• Chinese battery suppliers maintained a two-third share of global EV battery market in H1 2024.
• Europe and the US are investing in domestic battery supply chains and raising tariffs on Chinese cars and components to reduce dependency.
• To soften the blow, China is expanding in other regions such as LATAM, SEA and MEA.
• Global EV battery demand is projected to surpass 1.1 GWh by 2025.

The global EV battery market grew 19% YoY during H1 2024 with China ranking first in terms of EV battery installations, followed by Europe and the US. The global average battery capacity of BEVs reached 64.7kWh (+6% YoY) in H1 2024 while for PHEVs it reached 23.1kWh (+14% YoY), driven by the rising demand for smart electric vehicles in China, according to Counterpoint Research’s Global EV Battery Tracker.

Chinese companies, including CATL, BYD, CALB, EVE Power, Fudi, and Gotion Hi-tech, now control two-thirds of the global EV battery market. Following strong domestic success, their rapid international expansion has created significant challenges for other suppliers.

China’s dominance has triggered Western nations to impose new and additional tariffs on Chinese vehicles, batteries, battery components and other made-in-China products. During H1 2024, the US increased tariffs on Chinese electric vehicles (EVs) from 25% to 100%, raised battery and component tariffs from 7.5% to 25%, and introduced a 25% tariff on graphite and permanent magnets, which were previously untaxed. Similarly, Europe has imposed higher tariffs on Chinese-made EVs, including an additional 7.8% on Tesla, 17% on BYD, 18.8% on Geely, 35.3% on SAIC, 20.7% on other cooperating OEMs, and 35.3% on those who do not cooperate. In response, China has been aggressively expanding its presence in other regions such as Latin America, Southeast Asia, and the Middle East and Africa to offset these restrictions and explore new market opportunities.

Global EV battery demand is projected to surpass 1.1 GWh by 2025, fuelled by the addition of nearly 20 million new EVs. By 2030, this global demand for EV batteries is expected to reach close to 4 TWh.

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