Frost Radar in the Global Electric Vehicle Lithium-Ion Battery Market

Automotive Frost Radar in the Global Electric Vehicle Lithium-Ion Battery Market

A Measurement System to Spark Companies 2 Action (C2A)—Innovation that Fuels New Deal Flow and Growth Pipelines

INDUSTRY
Automotive
SECTOR
Powertrain

RELEASE DATE
28-Jan-2020
REGION
Global
DELIVERABLE TYPE
Frost Radar

RESEARCH CODE
MF32-01-00-00-00
SKU
AU01950-GL-MR_24068
Yes
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SKU
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Frost Radar in the Global Electric Vehicle Lithium-Ion Battery Market
Published on: 28-Jan-2020 | SKU: AU01950-GL-MR_24068

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The automotive industry is rapidly changing in terms of technology and the way it tackles environmental issues. Electric vehicles (EVs) have been introduced as a clean energy alternative to gas-powered vehicles: they feature low or zero emissions and have become an integral part of an automaker’s business strategies. Automakers are creating separate EV business units to be prepared for the expected demand boom, which will create a need for a huge supply of lithium-ion batteries.

Asian manufacturers have been on top of the lithium-ion battery supply to the EV industry. Major suppliers CATL, BYD, LG Chem, Samsung, and SK Innovation have already ramped up production capacities and have huge targets for the coming years in terms of installed capacities. These suppliers have entered into partnerships or have signed supply contracts with almost all EV manufacturers in the world to help them reach sales targets in order to comply with stringent emission standards. Europe is turning out to be the most attractive production destination because it is already home to many EV manufacturers. CATL has announced plans of expanding its German plant to 100GWh by 2025; it is expected to be the largest plant.

NCM (nickel-cobalt-manganese) is the most desired battery chemistry. Reducing cobalt has been identified as a way to reduce lithium-ion battery production costs, which has given rise to NCM 811 (an NCM ratio of 8:1:1) and is expected to lead to NCM 9:0.5:0.5. Automakers will concentrate on suppliers that can meet their aggressive sales targets. They are expected to have more than one battery supplier.

The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.

Market Overview

Market Overview (continued)

The Frost Radar

Frost Radar—Description of Companies Plotted

Panasonic Corporation

Contemporary Amperex Technology Ltd.

LG Chem

BYD Co. Ltd.

Automotive Energy Supply Corporation

Samsung SDI

SK Innovation

Tianjin Lishen Battery

The Last Word—Key Takeaways

Legal Disclaimer

Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform

Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform (continued)

Frost Radar—C2A

Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.

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Impacting your company's future growth potential.

The automotive industry is rapidly changing in terms of technology and the way it tackles environmental issues. Electric vehicles (EVs) have been introduced as a clean energy alternative to gas-powered vehicles: they feature low or zero emissions and have become an integral part of an automakers business strategies. Automakers are creating separate EV business units to be prepared for the expected demand boom, which will create a need for a huge supply of lithium-ion batteries. Asian manufacturers have been on top of the lithium-ion battery supply to the EV industry. Major suppliers CATL, BYD, LG Chem, Samsung, and SK Innovation have already ramped up production capacities and have huge targets for the coming years in terms of installed capacities. These suppliers have entered into partnerships or have signed supply contracts with almost all EV manufacturers in the world to help them reach sales targets in order to comply with stringent emission standards. Europe is turning out to be the most attractive production destination because it is already home to many EV manufacturers. CATL has announced plans of expanding its German plant to 100GWh by 2025; it is expected to be the largest plant. NCM (nickel-cobalt-manganese) is the most desired battery chemistry. Reducing cobalt has been identified as a way to reduce lithium-ion battery production costs, which has given rise to NCM 811 (an NCM ratio of 8:1:1) and is expected to lead to NCM 9:0.5:0.5. Automakers will concentrate on suppliers that can meet their aggressive sales targets. They are expected to have more than one battery supplier. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
More Information
Deliverable Type Frost Radar
No Index No
Podcast No
Author Naga Karthik Voruganti
Industries Automotive
WIP Number MF32-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9882-A6