Chinese cell suppliers are powering up on PHEV sales growth

As we highlighted in a recent insight, the so-called shift to hybrids is to-date primarily a theme of the Chinese market and is only just starting in North America and Europe, if at all.

Consequently, Chinese cell suppliers have been the leading beneficiaries of plug-in hybrid electric vehicle (PHEV) sales growth in the country while leading cell suppliers from South Korea have seen their PHEV-powered businesses shrink.

Among the top 10 cell suppliers globally, Sunwoda EVB (SEVB) led the pack in September 2024 with a 422% increase in GWh deployed into newly sold PHEVs versus the same month the year prior.

Over the same period, Gotion recorded a 222% increase in battery capacity deployed into newly sold PHEVs followed by CALB with a 199% increase year over year.

Notably, global juggernaut CATL, which was already the second largest supplier to PHEVs a year ago, deployed 78% more GWh into PHEVs this September than the same month the year prior.

Similarly, number two cell supplier globally, BYD, which has long been the leading global supplier to PHEVs (mostly its own), eked out a 66% increase in capacity deployed in September 2024 versus the same month the year prior.

For Panasonic, the sole Japanese cell supplier in the top 10, the company claimed an 18% year over year increase in deployment into PHEVs in September 2024, which was lackluster relative to its Chinese incumbents but offered some cold comfort in the face of a massive decline in its BEV business over the same period.

At the bottom of the pack, South Korean giant LG Energy solution saw a 26% drop in its PHEV business on a GWh basis in September 2024 while peers Samsung SDI and SK On recorded falls of 15% and 3%, respectively, over the same period.

Prospects for South Korean trio to improve in 2025

Overall, the South Korean trio have a greater share of their businesses exposed to European and North American markets, which have performed poorly overall in 2024 to-date.

Looking ahead, with enthusiasm around extended range PHEVs (also known as EREVs) mounting in both regions, and some compelling models coming from Stellantis, Ford, Hyundai and others, growth prospects for the trio are improved entering into 2025 but that growth will likely still pale in comparison to their Chinese counterparts.

Contact the Adamas team to discuss further.