Startup vendors of electric vehicles (EVs) are in much disadvantageous status in competing with international automakers to secure supply of EV batteries, for the latter have nearly monopolized the global supply of EV batteries through signing long-term supply contracts with or making stake investment in main battery makers.

These international automakers, including Volkswagen, Daimler, BMW, Ford Motor, and General Motors, have extended production from ICE (internal combustion engine) cars to EVs and they are expected to sell large volumes of EVs based on their reputation in traditional car markets. Thus, they have large bargaining power in seeking cooperation or partnership with battery makers for a stable supply of EV batteries.

In contrast, startup vendors of EVs are challenged with many risks, including in sales performance or in production due to insufficient and/or unstable supply of components.

However, Tesla is obviously an exception among startup vendors of EVs and this is because it is so far the globally largest EV vendor with sold EVs much outnumbering those sold by international automakers.

EV batteries basically consist of ternary models and LFP (lithium iron phosphate) ones, with Panasonic, LG Energy Solution, SK Innovation, Samsung SDI as well as China-based Contemporary Amperex Technology (CATL) and BYD being main makers with a combined global market share of about 70% for ternary batteries. For LFP batteries, China-based makers including CATL, BYD, and Gotion High-Tech together take up 95% of the global supply.