Chinese companies dominate the global market for batteries used in electric and hybrid vehicles, holding a combined share of 73.3% as of August 2026. This marks an increase from 69.7% a year earlier and highlights China’s growing grip on a key part of electrified cars.
CATL Leading with Nearly 40% Market Share
The Chinese battery maker CATL remains the largest player worldwide, supplying 333 GWh of battery capacity in the first eight months of 2026. This is a 25.2% increase compared to the same period in 2025, lifting CATL’s global share from 37.7% to 39.4%. Essentially, four out of every ten kWh of batteries used in electrified cars globally come from CATL.
CATL’s growth continues not just in China but also abroad, as it secures new contracts with international automakers and develops faster-charging technologies. Its latest Shenxing battery generation reportedly allows a full charge in about six minutes.
BYD Holds Second Place but Faces Mixed Trends
BYD remains the second-largest battery supplier with 127.9 GWh installed, growing 6.2% over the past year. However, its market share has dropped from 17.1% to 15.1%, reflecting slower growth than the overall market. This partly relates to BYD’s own drop in electric vehicle deliveries in China.
Internationally, BYD’s battery use has surged by 66.5%, indicating stronger overseas expansion. Together, CATL and BYD supply more than half (54.6%) of batteries fitted in electrified vehicles worldwide during this period.
Other Chinese Firms Rapidly Expanding
Besides CATL and BYD, other Chinese manufacturers are growing quickly. CALB ranks fourth globally with 44.4 GWh, up 32.6%. Gotion’s output shot up 47.1% to 41.5 GWh. EVE increased 53.9%, SVOLT 39.3%, and REPT more than doubled sales with 126.3% growth.
The rise of these firms, alongside CATL and BYD, reflects China’s broader advantage in lithium iron phosphate (LFP) batteries, a cheaper chemistry now holding 57.3% of the global market compared to 52.2% last year. BYD is also exploring sodium-based batteries to complement LFP technology.
South Korean Companies Losing Ground
South Korea’s big three battery makers have seen their share shrink over the last year. LG Energy Solution grew just 0.9% to 68.3 GWh but saw its market share fall from 9.6% to 8.1%. SK On experienced a 14.5% drop to 24.9 GWh and a shrink in share from 4.1% to 2.9%.
Global Market Growth and Regional Differences
Overall, the global market for vehicle batteries grew by 19.7% in the first eight months of 2026, reaching 844.2 GWh. However, growth varies by region: Europe’s demand increased 29.2%, China’s rose 16.9%, while North America’s market declined by 23.7%.
This trend underscores a concern for non-Chinese markets. Although electric cars may be assembled outside China and carry foreign brands, a significant share of their expensive and strategic battery parts increasingly comes from Chinese makers.
Source: motor.es