The global EV battery market grew by 19% year-on-year (YoY) during the first half (1H 2024), with China ranking first in terms of EV battery installations, followed by Europe and the United States.
The global average battery capacity of BEVs reached 64.7kWh (+6% YoY) in 1H 2024 while for PHEVs, it reached 23.1kWh (+14% YoY), driven by the rising demand for smart electric vehicles in China, according to Counterpoint Technology Market 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 1H 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 1.1GWh by 2025, fueled by the addition of nearly 20 million new EVs. By 2030, this global demand for EV batteries is expected to reach close to 4TWh.
