Tesla deal makes Panasonic a big leader in EV batteries with 39% share

Lux Research finds Panasonic has a 39% share in EV battery market. Lux Research forecasts a $30 billion EV battery market by 2020. Further findings and analytical comments by Lux Research includes: Panasonic’s 39% share of the battery market for plug-in vehicles makes it the leading supplier, but its reliance on a single deal with EV leader Tesla leaves it vulnerable. Its lead rival LG Chem has already signed up large automakers including General Motors, Volkswagen, Daimler, and Ford. In the event of a surge in sales of plug-in hybrids (PHEVs) by the German manufacturers, LG Chem would only need to win over Japan’s Nissan to topple Panasonic. Plug-in market is still in its infancy. Even Tesla, the poster-child of the EV revolution, holds less than a 0.1% share of global automotive sales. However, most auto majors are quickly offering more options: The Volkswagen Group, which sold 9.6 million units worldwide in 2014, plans 20 plug-in options by 2020. Renault-Nissan Alliance is a wildcard. Renault-Nissan will account for 9% of this market in 2020. However, AESC, its joint venture that sources batteries from NEC, has under performed, hobbled by high costs and lagging technology, leaving an opening for LG Chem (which already supplies Renault) to win over Nissan. Next-generation technology is key to leadership. New technology beyond the current Li-ion batteries is ke...