The growing popularity of Tesla Model Y in China is driving growth in sales of LG Energy Solutions' batteries. The South Korean battery manufacturer became the top supplier in May 2021.
The power ratio in the battery supply chain changed in May, Benzinga reports. South Korean company LG Energy Solutions (LGES) ranked first among battery manufacturers with the highest installed capacity and toppled China's CATL, which had been there for the first four months of 2021.
According to a report by research firm SNE Research, the installed base of LG's energy division jumped 270% in May from last year to 5.7 GWh. The company's market share increased from 25.8% to 28.7%. The report suggests that LGES's growth was driven mainly by strong sales of China-made vehicles: Tesla Model Y, Volkswagen ID.4, and Skoda ENYAQ, although Tesla clearly prevailed significantly.
In November 2020, Tesla entered into an exclusive deal with LG to supply batteries for the production of China-made Model Y. Production of the compact SUV began in January 2021 and gradually gained momentum. Strong demand for the SUV has been a strong catalyst for LGES's sales growth.
Data previously released by SNE Research showed that CATL, which is also a supplier of batteries for Tesla vehicles, held the leading position in the first four months of 2021 with sales of 21.4 GWh. LGES was in second place and sold 14.2 GWh batteries in the first four months of the year.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.