BYD wants to offer more range with a new generation of its blade batteries

The next step?

Electric cars have now been introduced, but they are still being looked at seriously by very few drivers. The main point of criticism remains the range, which can often meet the needs of frequent drivers under suitable weather conditions and in regions with a half-decent charging infrastructure. BYD is working tirelessly to make improvements in this area.

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Wang Chuanfu in his role as CEO of WORLD (CNE100000296) now announced the next generation of highly successful blade batteries. They are not only used by BYD itself, but also sold to various other companies. Such energy storage devices can even be found in some Tesla cars, as they offer the best price-performance ratio and are particularly suitable for electric vehicles in the affordable segment and in the lower middle class.

It is promised that the next generation will be smaller and lighter than previous solutions, as can be read on the American news site “Electrek”. The energy density should increase to 190 watt hours per kilogram. Current blade batteries have around 150 watt hours per kilogram. If BYD achieves its goals, the new electric vehicles could, in the best case scenario, increase the range by around 25 percent while maintaining the same weight.

BYD: Things are progressing

Admittedly, this is a dairy calculation and there are other factors to consider than just clean energy density. What exactly the new generation of batteries will offer remains to be seen. You don’t need much patience because BYD plans to complete the new blade batteries and put them on the market later this year.

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In any case, it shows that there is still a lot going on in this area and that the technology is far from reaching its end. This is generally a good thing for investors. Electric vehicles may still have disadvantages compared to conventional combustion engines. However, a small army of very talented engineers is working to eliminate these disadvantages. The fact that BYD continues to be at the forefront of battery technology ensures that the group has good opportunities for long-term growth.

Investors seem to feel the same way and BYD shares responded to the announcement on Tuesday with an impressive 2.8 percent price gain. Strengthened by this, the share price in this country rose to 24.61 euros, making up for some of the losses of the past few days and weeks. However, BYD cannot shake off lingering concerns about weak demand, a price war in China and Western politicians who view Chinese automakers beyond criticism.

Batteries make the difference

If BYD hits its own targets with its new lithium iron phosphate (LFP) batteries, this should generate a lot of interest. This type of battery boasts low raw material costs and automakers may be queuing up to equip their future vehicles with it. BYD’s customer list already includes well-known manufacturers such as Fort, Hyundai and Toyota. It has paid more than the Chinese company to invest in research, development and production of batteries.

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This gives BYD advantages even in the current difficult environment. Although the price war in China is creating almost insurmountable problems for many automakers, BYD still has room to maneuver when it comes to pricing. Of course, investors would prefer to see margins stay at the same level or increase. But under the current conditions, it is already a success that a large profit can still be obtained despite several discounts. The fact that battery technology is constantly being developed is just the right result.

10.04.2024 – Andreas Göttling-Daxenbichler

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