Key Takeaways
- With the increase in EV sales, battery companies are well-positioned for future growth
- Our top picks service companies such as Tesla, BMW, Mercedes, Ford, etc...
- The EV battery industry is estimated to reach $251 billion by 2035
Introduction
As we are beginning to see the rise of more electric vehicles on the road, you are likely asking the same questions as I am. What EV battery companies are there that are publically listed and I can invest in to turn a profit?
The EV battery industry seems to be becoming more saturated with new market entrants however, there are 5 dominant players at the top, providing their products to well-known car companies such as Tesla, BMW, Mercedes, etc... You can begin trading today.
What are EV batteries?
Electric vehicles (EVs) don't require conventional combustion engines to operate, they instead use electric motors to move. These motors draw their energy from the car's battery, and due to the amount of energy required, EV batteries are highly important fixures for electric vehicles.
EV batteries are made from a combination of raw materials, most notably lithium, cobalt, manganese, and other important elements. These raw materials then go through a complex manufacturing process to create what we see in EVs today.
Our top 5 EV battery company picks
Contemporary Amperex Technology Co. Limited (CATL)
Chinese electric battery company CATL is one of the world's largest EV battery providers and one of Tesla's major suppliers.
LG Energy Solution (LG)
The South Korean battery manufacturer is one of the world's largest EV battery makers alongside our other EV battery company top picks.
Panasonic Energy (PCRFF)
Japanese EV battery company is a global leader in developing and manufacturing EV batteries for hybrid and full-electric vehicles.
Samsung SDI (SDI)
Another South Korean leader in the EV battery market, with a speciality in developing solid-state batteries.
Build Your Dreams (BYDDF)
A Chinese EV company that designs and manufactures its batteries through its subsidiary FinDream Battery.
1. Contemporary Amperex Technology Co. Limited - CATL
Revenue: Approx. $55 billion
Market Cap: Around $1.1 trillion
Supplies: Tesla (China and global markets), BMW, Hyundai, Volkswagen, Nio, Rivian, BYD
CATL has got to be one of the biggest EV battery companies globally, throughout 2024 CATL's market share surpassed 37.5% meaning it services a 3rd of the world's EV makers and making it the most valuable EV battery supplier worldwide.
2. LG Energy Solution
Revenue: Approx. $22 billion
Market Cap: Around $57.21 billion
Supplies to: General Motors (GM), Ford, Hyundai, Kia, Stellantis (Chrysler, Dodge, Jeep), Volvo
LG Energy Solution has also found its way to the top of the list of global EV battery companies, as its global market share hit 13.7% in 2024. Supplying well-known car companies, its future growth trajectory looks promising.
3. Panasonic Energy
Revenue: Approx. $14.5 billion (for battery division)
Market Cap: Approx. $27.5 billion
Supplies to: Tesla (primarily the U.S. and some global markets), Toyota, Honda
One of the world's longest-standing battery companies, Panasonic is still a major player in the global market for EV battery manufacturing. Although Panasonic's sales have slumped by about 23% since 2020 the company still has a 6.7% market share in the global EV battery space.
4. Samsung SDI
Revenue: Approx. $12.4 billion
Market Cap: Around $109.64 billion
Supplies to: BMW, Volkswagen, Ford, Fiat Chrysler, Volvo, General Motors
Samsung SDI has a 4.8% global market share. They specialize in the development of more energy-dense solid-state EV batteries that are capable of lasting longer, outputting more power, and are lighter compared to other EV batteries.
5. Build Your Dreams BYD
Revenue: Approx. $33 billion (total revenue)
Market Cap: Around $100 billion
Supplies to: Nio (as a battery supplier), Tesla (through its battery recycling and supply chain involvement), Chinese automakers (BYD is also a car manufacturer itself), Various local and international EV makers in China
More famously known for the manufacturing of their electric vehicles, BYD also produces EV batteries through its subsidiary FinDream. In the 3rd quarter of 2024, it had a global sales revenue share of 12.3%, making it one of the top 5 EV battery manufacturers.
How we selected our EV battery company top picks
Identifying battery companies that specialize in supplying the EV industry is not a difficult chore, but identifying the ones that show potential future growth can be. That is why we focused on strict criteria when compiling our list.
Market Cap >$20 billion USD
Share of market >5% globally
Revenue >$1 billion USD
Further adding to the above criteria, I also analyzed each battery company's brand equity and reliability as a sign of trust among their customers. This gives us a deeper insight into whether these companies can continue to produce profitable gains.
Frequently Asked Questions
Who is the largest EV battery manufacturer?
CATL is the largest EV battery manufacturer in terms of market share. Their customers include almost every major electric vehicle brand servicing 37.5% of the industry globally.
What is the main component of EV batteries?
The main material used is lithium-ion although there are many other compounds used in the development of these batteries.
How much does an EV battery cost?
Between $5,000 - $10,000. With the latest developments by companies such as CATL, EV batteries are now becoming cheaper than ever, with CATL announcing their batteries cost just $56 per kWh, for context Tesla's largest batteries are 100 kWh.
Conclusion
As an investor, you can see there are various EV battery companies to choose from. If you're a long-term value investor like myself, then you are planning on adding stocks that have strong future growth potential.
Electric vehicles (EVs) have now become the norm, with everyone switching away from combustion-engine cars, we understand that this will lead to further demand from battery companies, and due to this, an increase in these companies' revenue margins.
If you're looking to gain an edge over the market, I highly recommend you try Intellectia AI. It's a great tool investors use to help them understand and be guided by an AI on what stocks to buy. Give it a try.
