Global lithium-ion batteries (LiB) shipments for energy storage systems (ESS) increased by 53% year-on-year to 185 gigawatt-hours (GWh) last year.
According to market researcher SNE Research on March 11, by region, demand for ESS was highest in China (84 GWh), accounting for 45% of the total market share. North America (55 GWh) accounted for 30%, while Europe and other regions each recorded 25 GWh, holding a 12% market share.
The growth rate of Chinese battery companies based on lithium iron phosphate (LFP) was particularly notable. Chinese companies occupied the top five positions regarding shipment performance and market share, with a combined market share of 78%.
In terms of companies, CATL maintained its first-place position from the previous year, with shipments increasing by 42% year-on-year to 74 GWh. During the same period, the second-place BYD saw an increase of 57% to 22 GWh, and the third-place EVE recorded a 110% increase to 21 GWh.
South Korean companies Samsung SDI and LG Energy Solution ranked sixth and seventh, respectively, but Samsung SDI’s growth rate was 0%, and LG Energy Solution saw a decrease of 11% in shipments. The two companies’ market share also fell from 14% to 9%.
ESS is not subject to the Foreign Entity of Concern (FEOC) regulations under the United States Inflation Reduction Act (IRA), so there are no restrictions on Chinese batteries, allowing competitively priced Chinese products to dominate the global market, according to SNE Research.
The market researcher said, “South Korean battery makers have decided to mass-produce LFP batteries in North America from 2026, aiming to rebound in the ESS market,” adding, “They should be able to achieve a cost competitiveness comparable to their Chinese counterparts.”
LG Energy Solution began mass-producing LFP for ESS at the end of last year and plans to produce LFP for electric vehicles in the second half of next year. Samsung SDI and SK On plan to start mass production of LFP in 2026.
