In this article, we will be taking a look at the 5 next generation battery technology companies. To read our detailed analysis of the next generation battery market, you can go directly to see the 21 Next Generation Battery Technology Companies.
5. BYD Company Limited
Revenue as of 2021: $34.01 billion
BYD Company Limited is an integrated EV company based in Shenzhen, China. It was founded in 1995 as a battery manufacturing company but also entered the automobile industry in 2003. Since then, it has been producing batteries, semiconductors, hybrid vehicles, and battery-powered vehicles, as well as other components in its EVs. It is the top EV company in China, well ahead of the national EV market. As of the first half of 2022, the company had a global power battery market share of 11.8%, the third highest in the world.
The company is backed by Warren Buffett and has recently exceeded Tesla as the world’s largest EV maker while still having further room to expand internationally. It had 1.87 million EV deliveries in 2022 due to its cost advantages over competitors. BYD has these advantages thanks to being the only EV player that has a vertically integrated business model since it produces batteries and other components for EVs itself. In fact, BYD sells these to some of its competitors, including Tesla. This has given it the advantage of having 20%-30% lower costs than leading automakers such as Toyota. BYD raised $3.9 billion in a private placement in 2021 and has had a positive cash flow which is encouraging for its sustained growth.
4. Tesla, Inc.
Revenue as of 2021: 53.82 billion
Tesla Inc. is an electric vehicle and energy generation and storage system company based in Texas, USA. Its automotive segment deals with electric vehicles and maintains a network of Tesla Superchargers alongside complimentary services. The second is the energy generation and storage segment which deals with solar energy generation and other energy storage products. Tesla Inc.’s shares have seen an enormous rally in 2023 after facing major hits.
In 2022, Tesla, Inc. saw an increase in revenue of around 50%. It sold 1.31 million vehicles in 2022, which was a 40% increase from the previous year, which includes 405,300 units sold in the fourth quarter of 2022. Tesla Inc.’s earnings grew by 127.8% over the past year and are forecasted to grow at a rate of 18.3% per year. The company plans to spend $3.6 billion to build a Semi and a battery factory in its Nevada complex, along with hiring 3000 additional workers. Tesla, Inc. has also launched its 4680 battery with the aim to cut battery costs to half by providing a higher-capacity yet cheaper option to its consumers and plans to produce enough 4680 batteries for 1.5 million light-duty vehicles in the Nevada complex.
In January 2023, Tesla, Inc. saw its strongest orders year-to-date in history, according to Elon Musk. As of right now, it is valued at $76 billion, which is almost double its valuation in 2022.
3. Panasonic Holdings Corporation
Revenue as of 2021: $60.5 billion
Panasonic Holdings Group is a multinational electronics corporation based in Kadoma, Japan. It was founded in 1918 and produces a wide range of electronic products, including televisions, digital cameras, automotive components, and batteries. Panasonic Holdings Group is a major player in the battery market, particularly in the lithium-ion battery segment while its product line also includes lithium coin, valve-regulated lead acid, and nickel metal hydride batteries. As of the first half of 2022, the company had a global power battery market share of 9.6%, the fourth highest in the world.
The company is a leading supplier of batteries to the automotive industry, providing battery cells for hybrid and electric vehicles. It has also formed strategic partnerships with companies such as Tesla and Toyota. For example, Panasonic Holdings Group has been producing Tesla’s 2170 cylindrical batteries since 2016 in Nevada, where the facility produces 37 gigawatt-hours of batteries a year. In 2021, it expanded to Nevada with Tesla’s Gigafactory 1 and has also broken ground in a $4 billion factory in Kansas, where it is supposed to start production in 2025 for 2170 cells for companies including Lucid. The Kansas plant is expected to add 60% to Panasonic’s global battery capacity.
The company expects its revenue from the energy business to show a 26% increase by 2025 alongside better performance indicators such as its EBITDA. Its operating income increased by 5.4% from $14.7 billion in 2021 to $15.5 in 2022, while its EBIT margins increased by 35% from 2.1 billion in 2021 to 2.8 billion in 2022.
2. General Motors Company
Revenue as of 2021: $127 billion
General Motors Company is a multinational automotive corporation that is based in Michigan, USA. It was founded in 1908 and is one of the largest automobile manufacturers in the world, with a diverse range of brands, including Chevrolet, Buick, Cadillac, and GMC. General Motors Company produces a wide range of vehicles, including cars, trucks, and SUVs, and has a strong focus on electric vehicles.
The company has committed to investing $35 billion in EV and autonomous vehicle development by 2025. This includes a $650 million investment in a US lithium mine in order to secure raw materials used in EV batteries, which also helps cut costs as president Biden’s recent Inflation Reduction Act gives tax credits to companies sourcing raw materials from within the United States. GM has launched a joint venture with LG, Ultium Cells, that has one battery plant in Ohio with a battery capacity above 35 GWh and is building on two other battery plants in the United States. It expects to have a 130 GWh battery cell capacity once all three plants are operational, while a fourth plant is also being planned.
The increase in the demand for cars and their prices has helped General Motors Company to exceed earning expectations from analysts. This increase in prices has also led experts to forecast a revenue of $195.2 billion for the company in 2023 and a revenue of $211.6 billion in 2024. General Motors Company ranked 22nd on Forbes’ Fortune 500 list in 2021.
1. Ford Motor Company
Revenue as of 2021: $136.34 billion
Ford Motor Company is an automotive company that is based in Michigan, USA. It was founded in 1903 and since then has been one of the largest automobile manufacturers in the world, with a number of brands, including Ford, Lincoln, and Troller. The company has plans to introduce an all-electric version of its best-selling F-150 pickup truck and a fully electric Mustang. In addition to vehicles, Ford also produces advanced battery technology, including its IonBoost battery system, which is designed to power its hybrid and electric vehicles.
The company has planned to build a $3.5 billion EV battery factory in Michigan with the help of the Chinese company Contemporary Amperex Technology Co., the world’s number 1 maker of electric-car batteries. It expects to begin production in 2026 and keep 100% ownership of the factory. The factory will be producing new lithium-ion phosphate batteries, also known as LFPs, as upgrades to the more expensive nickel cobalt manganese batteries that Ford Motor Company is currently using.
Ford Motor Company’s revenue increased by 15.3% from $136.3 billion in 2021 to $158.1 billion in 2022. Alongside this, its gross profit, as well as operating income, increased from 2021 to 2022 as well. The net loss in 2022 can be explained by the company’s investment in other start-ups and ventures that are expected to become profitable eventually.
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