Electrolyte Volume for EV Batteries Up 45.2% Year-on-Year in First Half of 2024

Double-Digit Growth Continues
Stable Demand Rises Outside China

The volume of electrolyte used in electric vehicle (EV, PHEV, HEV) batteries in the first half of this year grew by 45.2% compared to the same period last year.

Exterior view of Enchem's Georgia plant in the United States. Enchem

According to energy market research firm SNE Research on August 14, the total volume of electrolyte used in electric vehicles worldwide from January to June this year reached approximately 616,000 tons. During the same period, the market outside China recorded 203,000 tons, marking a 28.2% increase and continuing a stable trend of expanding demand.

Electrolyte is a key material that enables the movement of lithium ions within lithium-ion batteries, playing a crucial role directly linked to the battery's charging speed, energy efficiency, safety, and lifespan. Driven by the expansion of the electric vehicle market and increasing demand for high-power batteries, the electrolyte market is expected to maintain strong growth over the medium to long term.

In the global electrolyte market during the first half of this year, major suppliers showed remarkable growth. Tianqi maintained its top market position with 133,000 tons, a 29.3% increase from the same period last year, while BYD followed with 105,000 tons, up 28.8%. Capchem and Smoothway supplied 92,000 tons and 33,000 tons, respectively, soaring by 107.9% and 103.3% over the same period, ranking third and fifth in the market.

Korean company Enchem ranked seventh, recording 24,000 tons, a 0.8% increase.

In terms of market share by country, Chinese companies continue to dominate the electrolyte market. As of the second quarter, Chinese companies held an 87.3% share, while Korean and Japanese companies accounted for 7.9% and 4.8%, respectively. These figures represent a slight decrease compared to the same period last year.

Global Electric Vehicle Battery Electrolyte Statistics for the First Half of This Year. SNE Research

An SNE Research official stated, "While demand continues to expand outside China, the trend toward supply chain localization in North America and Europe is also prompting the electrolyte industry to adopt regional diversification strategies. As a result, some major companies are enhancing their responsiveness to customers by securing local production bases and are working to expand long-term contracts based on stable supply chains."

The official added, "The electrolyte market is expected to continue growing as electric vehicle adoption increases and high-performance battery technologies spread. In particular, companies that achieve differentiation in technology, quality, and supply stability are likely to gain an advantage during the medium- to long-term market restructuring process, and competition centered on technological capabilities among electrolyte manufacturers is expected to intensify further."

This content was produced with the assistance of AI translation services.