Global Passenger EV and Hybrid Battery Market Grew by 40% in 2023

Global Passenger EV, Hybrid Battery Market Expanded 40% In 2023

In 2023, the global passenger xEV (BEVs, PHEVs, HEVs) battery market experienced significant growth, driven by record vehicle sales and an increase in average battery capacity. According to Adamas Intelligence, approximately 689.2 gigawatt-hours (GWh) of battery capacity were deployed in newly sold passenger xEVs worldwide, marking a 40% increase from the previous year.

This deployment translates to almost 1.9 GWh per day, equivalent to nearly 19,000 battery packs (100 kWh each). Passenger plug-in electric car registrations surged by 35% year-over-year to almost 13.7 million units in 2023, with all-Electric cars leading in battery deployment followed by plug-in hybrids. Non-rechargeable hybrids made a smaller contribution due to their relatively small battery packs.

The battery market is expected to continue growing, with the possibility of reaching 1 terawatt-hour (TWh) in the near future. The 2023 deployment volume alone accounted for 37% of all battery capacity ever deployed, exceeding the total deployment from 2014 to 2021 combined.

Among the top brands, Tesla and BYD led the market with over 100 GWh each. Other notable brands that exceeded 10 GWh included GAC Aion, Volkswagen, BMW, and Mercedes-Benz. The wider Volkswagen Group surpassed 50 GWh in 2023. Li Auto and Toyota showed significant growth in their battery deployment, particularly in the extended-range electric vehicle (EREV) segment.

Overall, the global passenger xEV battery market experienced substantial expansion in 2023, setting new records and paving the way for continued growth in the future.