BYD's cost of developing new batteries will not increase but decrease

For BYD, the development of new energy vehicles must consider the issue of renewal/battery, so BYD has been working on new batteries. BYD's chairman Wang Chuanfu recently revealed that BYD has successfully developed a new type of battery with high energy density-lithium ferromanganese phosphate battery. The new battery has exceeded the energy density of the traditional lithium iron phosphate battery and increased its density by nearly 67 %, which means that the new battery will increase the range of electric vehicles. In addition, Wujingsheng, BYD's chairman's secretary, said the new battery will be put into production next year, giving priority to BYD's own vehicles.

The mileage of electric vehicles has always been the bottleneck faced by electric vehicles. At present, the power lithium batteries used in new energy vehicles mainly include lithium iron phosphate batteries and ternary material batteries. Tesla MODELS, which has received much attention in the country recently, can reach 500 kilometers due to the use of Panasonic's NCA ternary material battery. BYD uses the traditional lithium iron phosphate battery as the source of energy for the E6 pure electric vehicle, with a maximum range of 300 kilometers, which is obviously a difference. BYD understands that only the development of new batteries with their own core technologies and their successful application in their own new energy vehicles will greatly improve their endurance and make them more competitive in the new energy car market.

BYD develops new batteries, energy density increases by 60 %.

BYD did successfully develop new batteries, and the new batteries have significantly increased their capacity compared to conventional batteries, but the cost is lower. This technological breakthrough has attracted the attention of the market and the industry.

The biggest breakthrough in BYD's new battery development is the addition of manganese to traditional lithium iron phosphate batteries to form lithium ferromanganese phosphate new batteries. The new lithium ferromanganese phosphate battery breaks through the energy density limit of the traditional lithium iron phosphate battery. The battery energy density has been increased from 90 Wh/Kg to 150 Wh/Kg, which is basically the same as the energy density of the ternary material battery(approximately 150 Wh/Kg). The increase in battery energy density means that the range of endurance will be greatly increased.

The cost of new batteries will not increase but decrease

The energy density of the new battery has increased dramatically, but the cost has not increased but decreased. It is understood that the price of traditional lithium iron phosphate batteries is much lower than that of ternary material batteries. However, cobalt has very little reserves in China, accounting for only 1 % of the world's total storage, and it needs to be imported from overseas. The price is limited. The manganese in the lithium ferromanganese phosphate new battery developed by BYD is very rich in China's reserves, so it maintains an advantage in cost.

Taken together, BYD's new batteries, on the one hand, have increased energy density and reduced the number of in-vehicle batteries, helping to save energy. On the other hand, the reduction in battery costs will be directly reflected in the price of the car and the cost of the car.

With the support of international policies, sales of BYD new energy vehicles are climbing, and after the development of new batteries, demand has also grown. At present, BYD has a 1.6 GWh / annual battery factory in Huizhou with the highest production capacity in the country. However, in order to ensure the timely delivery of new energy car orders, BYD plans to build a new 6GWh / annual battery factory at Pothole base in Shenzhen, which will be one of the largest power battery factories in the world. The first phase of the new plant will be phased in in September, adding at least 1.5 GWh of capacity during the year.

With the construction of the new plant, BYD's lithium ferromanganese phosphate batteries will be put into production next year and will be used in its own new energy vehicles in the future.

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