Pike Research ranks LG Chem and Johnson Controls highest in new assessment of electric and hybrid vehicle Li-ion battery manufacturers
|Pike Pulse grid for automotive Li-ion manufacturers. Click to enlarge.|
A new Pike Research report, the “Pike Pulse Report: Electric Vehicle Batteries” evaluates 10 of the leading electric and hybrid vehicle battery manufacturers and rates them on 10 criteria for strategy and execution, including vision; go-to-market strategy; partners; product strategy and roadmap; geographic reach; market share; sales and marketing; product quality; and reliability, product portfolio, and staying power.
The report concludes that the manufacturers best positioned to take advantage of shifts in the market are LG Chem and Johnson Controls.
Lithium ion batteries currently dominate the nascent market for plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) and are slowly becoming selected for use in hybrid electric vehicles (HEVs) and stop-start vehicles (SSVs), the report notes. As these vehicle segments grow to hundreds of thousands and then millions of vehicles sold per year, Li-ion production will enter volume production, lowering their cost and making the technology cost-competitive with alternative technologies such as Nickel Metal Hydride (NiMH) batteries.
Japanese and Korean companies that originally produced cells for the consumer electronics and computing markets currently lead the automotive market. These companies are being challenged by companies mostly from China and North America that are slowly gaining customers, mostly in their domestic markets, Pike says. The Li-ion automotive market is entering a phase in which some smaller companies will fail or be acquired due to an inability to reach volume production. The market will likely see volatility during 2012 as some supplier agreements change hands, the report suggests.
Despite significant investment in battery production and technology development in the United States during the past three years, Japanese, Korean, and Chinese companies currently lead in global sales of electric vehicle batteries, and they are likely to continue doing so in the near term.
The market will likely see volatility during 2012 as some supplier agreements change hands, and some smaller companies will likely fail or be acquired due to an inability to reach volume production.—research director John Gartner
Pike ranked LG Chem highest in both the Strategy and Execution categories in this Pike Pulse. The company has a diversified customer base of international automotive OEMs that are expected to be among the most successful sellers of hybrid and plug-in electric vehicles. This customer base will likely give LG Chem the largest market share for EV batteries in 2012, Pike suggests. In addition, the company has outlined a clear and consistent vision for developing and marketing its technology and has established manufacturing centers in proximity to its major customers.
Ranking second in both Strategy and Execution is Johnson Controls Inc., which sells Li-ion batteries to makers of both hybrid electric vehicles and plug-in hybrid electric vehicles in all three of the major regions offering EVs: North America, Europe, and Asia Pacific. The company’s diverse product portfolio and its development of energy storage technologies have created a positive reputation for quality within the automotive industry, but it must still translate its automotive relationships into a more significant market share to be considered a leader, according to Pike.
|Pike’s Top 10|
|8||Hitachi Vehicle Energy|