On June 13, a report by South Korean media "Global Economy" claimed that in the electric vehicle battery industry, the overwhelming dominance of Asian enterprises is further consolidating. Companies from China, South Korea, and Japan have purchased 94% of the critical minerals for batteries, effectively monopolizing the market.
According to Adamas Intelligence data, the total value of battery metals in electric vehicle battery packs sold globally in the first quarter of this year was $3.01 billion. This represents a 1.3% increase compared to the same period last year. Core materials such as graphite, lithium, nickel, cobalt, and manganese totaled 428,200 tons, up 27% year-on-year.
Battery manufacturers headquartered in China, South Korea, and Japan dominate the market, accounting for 94% of raw material expenditures. Among more than 60 battery suppliers and manufacturers worldwide, Asian companies effectively control the entire market. The electric vehicle battery industry is an especially competitive field, with four companies—CATL, LG Energy Solution, BYD, and Panasonic—monopolizing two-thirds of the total battery metal procurement costs.
CATL from China has the largest share, followed by BYD from China, LG Energy Solution from South Korea, and Panasonic from Japan. Chinese battery manufacturers account for more than half of global consumption.
Ultium Cells, the largest battery producer in North America and a joint venture between LG Energy Solution and General Motors, some analysts noted that part of the spending by these battery manufacturers may be reflected in Asia, further highlighting the dominance of Asian companies.
Chinese battery manufacturers are securing cost competitiveness through leading lithium iron phosphate (LFP) technology. Over the past three years, the market share of LFP batteries in China has exceeded 50%, with leading EV manufacturer BYD early on transitioning to the LFP product line. Consequently, Chinese companies spend less than their NCM-dependent competitors by reducing expenditures on more expensive nickel and cobalt. This means that integrated supply capacity allows them to better control the market.
From the perspective of the battery metal market size in the first quarter of this year, the lithium market is the largest at $1.28 billion, but it decreased by 7.9% year-on-year. On the other hand, nickel increased by 7.9% to $1.26 billion, and cobalt increased by 5.9% to $290 million. Graphite and manganese showed particularly significant increases. Graphite surged 27.9% year-on-year to $137 million, while manganese rose 36.3% to $41 million.
Original source: https://www.toutiao.com/article/1834820428689543/
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