China Corners Half of Global Battery Market, KARS Captures

Two Chinese companies, Contemporary Amperex Technology Co and BYD, together have more than 50 percent market share of the global battery market, announced. Financial Times.

Contemporary Amperex, commonly known as CATL, is the world’s largest battery maker and doubled battery sales last year through November, making enough batteries for 3.3 million standard-size EVs. In 2022, it increased its market share to 37.1%, from 32.2% in 2021.

The last report from Research SNE Outside of Korea, BYD, the EV maker and China’s second-largest battery cell producer, saw its sales triple last year through November and now has a 13.6% share of the global battery market. In 2022, it surpassed LG as the second largest battery manufacturer worldwide.

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EV demand in China surged last year, doubling sales to 6.4-6.5 million units by 2022, although sales are expected to pick up this year as government subsidies in China expire. That said, global demand for EVs is expected to increase in the coming years and CATL is already looking into the European and North American markets, having recently started production in Germany, its first plant outside of China.

Major Players in the EV Battery Market

that one KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) It offers a good solution for investors who want to capture the growth potential of major EV manufacturers around the world.

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The fund not only takes a global approach to EV exposure, but also invests across the value chain, offering diversification for EV investors. KARS is working with battery manufacturers such as Contemporary Amperex Technology Co. (CATL) with a weight of 4.76% and BYD with a weight of 3.00%.

KARS measures the performance of the Bloomberg Electric Vehicle Index, which tracks the industry as a whole, including exposure to manufacturers of electric vehicles, electric vehicle components, batteries, hydrogen fuel cells, and raw materials used in the synthesis of electric vehicle parts.

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KARS invests in many well-known car companies such as Tesla, Ford, and Mercedes-Benz, and major Chinese EV manufacturers such as Li Auto, Nio, and BYD. It also goes a step further and invests in companies involved in the EV value chain, such as Samsung, LG, Panasonic, and Albemarle.

There is an expense ratio of 0.70%.

For more news, information and analysis, visit Climate Insights Channel.

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