CATL Dominates Global EV Battery Market with 37.5% Share, BYD Emerges Second

Tesla and GM supplier CATL dominate the global EV battery market with a 37.5% market share, followed by BYD with 17.8%. LG Energy Solutions and SK On also saw growth, capturing 9.5% and 4.2% of the market respectively. CATL's deal with GM and Ford's partnership with SK On highlight the growing demand for EV batteries. BYD's profit slipped 30% due to China's EV price war, while Tesla released its Master Plan IV, focusing on robotics and AI growth.

The global electric vehicle (EV) battery market has seen significant shifts in the first half of 2025, with Tesla and GM supplier CATL leading the way. According to the latest data from SNE Research [1], Tesla and CATL together captured 37.5% of the market share, followed by BYD with 17.8%. LG Energy Solutions and SK On also saw growth, capturing 9.5% and 4.2% of the market respectively.

The strong performance of CATL is attributable to its strategic partnership with General Motors (GM). This collaboration highlights the growing demand for EV batteries, as GM aims to electrify its fleet. Meanwhile, Ford's partnership with SK On underscores the increasing reliance on third-party suppliers to meet the burgeoning demand for EV batteries.

BYD, while maintaining a significant market presence, has faced challenges. The company reported a 30% decline in profits due to the intense competition and price war in the Chinese EV market [2]. Despite this setback, analysts remain optimistic about BYD's overseas business, which saw a more than doubling of wholesale volumes in the second quarter of 2025 [2].

Tesla, on the other hand, has shifted its focus to artificial intelligence and robotics. The company's Master Plan IV, unveiled by CEO Elon Musk, envisions a future where AI-enabled devices and robots complete both everyday and risky jobs. The Optimus humanoid robot project is expected to generate approximately 80% of the company’s future value [3]. Although the robots are still in development, Tesla plans to manufacture 5,000 units in 2025 and ramp up production to 1 million units annually by 2029.

The global EV battery market is being reshaped by regulatory tightening and supply chain reorganization, particularly in the United States and Europe. The One Big Beautiful Bill Act (OBBBA) calls for an early phase-out of IRA benefits and introduces the Foreign Entity of Concern (FEOC) rule to restrict subsidy eligibility for batteries and raw materials linked to China [1]. These changes are compelling companies to revise their strategies to increase sourcing and manufacturing within North America.

The demand side is also evolving, with Europe showing a gradual recovery due to stricter CO₂ regulations, while the U.S. market is showing a divergence, with hybrid electric vehicles (HEVs) gaining momentum and battery electric vehicles (BEVs) slowing down amid subsidy and policy uncertainty [1]. Companies are realigning their portfolios to decide which models to build, where, and with which materials.

In conclusion, the global EV battery market is undergoing significant changes, with Tesla and CATL leading the way. BYD, despite facing profit challenges, continues to expand its overseas business. The market is being reshaped by regulatory changes and evolving demand patterns, requiring companies to adapt their strategies accordingly.

References:
[1] https://www.sneresearch.com/en/insight/release_view/492/page/0
[2] https://www.ainvest.com/news/byd-shares-plummet-weaker-expected-earnings-narrowing-profit-margin-2509/
[3] https://www.analyticsinsight.net/news/tesla-master-plan-iv-elon-musks-bold-shift-to-ai-and-robotics