February Domestic Power Battery Installed Base 18GWh, CATL Market Share Over 55%

Recently, the China Automotive Battery Innovation Alliance (hereinafter referred to as "Battery Alliance") announced the monthly data for power batteries for February of this year. The data shows that in February, the installed capacity of power batteries in China declined month-on-month and year-on-year. From the perspective of enterprises, CATL achieved a market share of over 55%, and BYD held a market share close to 18%.

Specifically, in February, the installed capacity of power batteries in China was 18GWh, a decrease of 18.1% year-on-year and a decline of 44.4% month-on-month. This trend is consistent with the lower production and sales of new energy vehicles in that month.

According to data from China Association of Automobile Manufacturers, affected by the Spring Festival, the market cooled down in February, and the production and sales of new energy vehicles also experienced a rare double decrease month-on-month and year-on-year. In that month, the production and sales of new energy vehicles were 464,000 units and 477,000 units, respectively, a month-on-month decrease of 41.1% and 34.6%, and a year-on-year decrease of 16% and 9.2%, respectively.

Focusing on segmented sectors, in February, the installed capacity of ternary batteries was 6.9GWh, accounting for 38.7% of the total installed capacity, with a year-on-year increase of 3.3%, but a month-on-month decrease of 44.9%. Lithium iron phosphate batteries had an installed capacity of 11.0GWh, accounting for 61.3% of the total, with a year-on-year decrease of 27.5% and a month-on-month decline of 44.1%.

Ternary lithium batteries and lithium iron phosphate batteries are the two most mainstream technology pathways in the power battery field. Both use graphene as the anode material, but they employ different cathode materials. Ternary lithium batteries primarily use nickel cobalt aluminum (NCA) or nickel cobalt manganese (NCM) as the cathode, while lithium iron phosphate batteries use lithium iron phosphate as the cathode.

These two technological approaches each have their own advantages. For example, lithium iron phosphate batteries have advantages over ternary lithium batteries in safety and cost, while ternary lithium batteries have higher energy density, voltage capacity, and range.

Before 2017, as mini and micro electric vehicles dominated the market, lithium iron phosphate batteries, with their lower cost, higher safety, and longer life cycle, were the main choice in the market, once accounting for about 70% of China's power battery market. After 2017, due to policy adjustments and other reasons, ternary lithium batteries overtook lithium iron phosphate batteries, with their market share continuing to soar.

However, in the past two years, with automakers continuously seeking cost reduction and the phase-out and cancellation of policy subsidies, lithium iron phosphate batteries have regained mainstream market status.

According to the Battery Alliance data, from January to February this year, the cumulative installed capacity of power batteries in China was 50.3GWh, with a cumulative year-on-year increase of 32%. Among them, the cumulative installed capacity of ternary batteries was 19.5Wh, accounting for 38.9% of the total, with a cumulative year-on-year increase of 60.8%. Lithium iron phosphate batteries had a cumulative installed capacity of 30.7GWh, accounting for 61.1% of the total, with a cumulative year-on-year increase of 18.6%.

On the corporate level, in February, a total of 36 power battery companies in China's new energy vehicle market achieved installed capacity, three fewer than the same period last year. The installed capacity of the top 3, top 5, and top 10 power battery companies was 14.1GWh, 15.3GWh, and 17.4GWh, respectively, accounting for 78.6%, 85.3%, and 96.7% of the total installed capacity.

From January to February, 41 power battery enterprises in China's new energy vehicle market achieved installed capacity, an increase of 2 from last year. The installed capacity of the top 3, top 5, and top 10 power battery companies was 37.8GWh, 41.9GWh, and 48.2GWh, respectively, accounting for 75.2%, 83.3%, and 95.9% of the total installed capacity.

Among these companies, CATL still leads in terms of installed capacity of power batteries. In February, CATL's installed capacity reached 9.82GWh, with a market share of 55.16%, an increase of 5.75% compared to the previous month.

The increase in CATL's market share is related to the decline in BYD's share. In the same month, BYD, ranked second, saw a decrease in market share, with installed capacity reaching 3.16GWh and a market share of 17.75%.

It is worth noting that for a long time, CATL and BYD have consistently occupied the top two positions, with a combined market share of about 70%. Looking back, their shares have generally been fluctuating in tandem. In 2023, CATL's installed capacity of power batteries reached 167.1GWh, accounting for 43.11%, while BYD's installed capacity was 105.48GWh, accounting for 27.21%.

Looking at the segments in February, whether in ternary batteries or lithium iron phosphate batteries, CATL had the highest market share. Ternary battery installations were 4.84GWh, accounting for more than 70%, and lithium iron phosphate battery installations were 4.98GWh, accounting for more than 45%. BYD's battery installations in February all came from lithium iron phosphate batteries.

Although its market share in this field was close to 30%, it was still lower than CATL's. To date, CATL has maintained the first place in this field for four consecutive months, a position that had long been occupied by BYD.

Moreover, it's noteworthy that in August of last year, CATL launched the world's first lithium iron phosphate 4C supercharging battery - the "Sakura Supercharging Battery," which is claimed to have a range of up to 700 kilometers and is capable of all-temperature fast charging, achieving an 80% charge in 30 minutes even at temperatures as low as -10°C.

In February of this year, Chery's Exeed Star and CATL jointly announced the mass production and installation of the Sakura Supercharging Battery, with the first model to be outfitted being the Exeed Star ET. Additionally, CATL has previously disclosed that since its launch, the "Sakura Supercharging Battery" has been well received in both domestic and international markets, and the company has already confirmed collaborations with multiple automakers, including GAC, Chery, Avatr, NETA, JiLU, and LETIN. Industry insiders believe that the Sakura Supercharging Battery is expected to help CATL to consolidate or even expand its market share in the lithium iron phosphate battery field.