Global Passenger EV and Hybrid Battery Market Booms, Up 40% in 2023

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The global passenger xEV (BEVs, PHEVs, HEVs) battery market experienced significant growth in 2023, with approximately 689.2 gigawatt-hours (GWh) of battery capacity deployed worldwide in newly sold passenger xEVs. This represents a 40% increase from the previous year, according to Adamas Intelligence.

In 2023, the equivalent of nearly 19,000 battery packs (100 kWh each) were deployed daily, amounting to 1.9 GWh. This surge in deployment was driven by record-breaking vehicle sales and an increase in average battery capacity.

Passenger plug-in electric car registrations also saw a 35% year-over-year increase in 2023, totaling almost 13.7 million units. All-electric cars accounted for the highest share of battery deployment, followed by plug-in hybrids, while non-rechargeable hybrids contributed to a lesser extent.

While approximately 200 brands contributed to the total result, only 16 surpassed 10 GWh, with Tesla and BYD leading the pack with over 100 GWh each. Tesla deployed 132.1 GWh, a 37% increase from the previous year, while BYD achieved 101.6 GWh, up 51% year-over-year.

GAC Aion came in third with 31.1 GWh, followed closely by Volkswagen with 30.3 GWh, and BMW with 29.1 GWh. The wider Volkswagen Group exceeded 50 GWh in 2023, making it the third-largest automotive group.

Chinese Li Auto saw an impressive 189% year-over-year increase in battery deployment, while Toyota more than doubled its result in 2023, indicating strong growth potential for the Japanese automaker.

With the electric vehicle market continuing to expand, it is expected that the battery market will follow suit, potentially reaching new heights in the coming years. However, it remains uncertain whether the market will reach the 1 terawatt-hour (TWh) level in 2024.