BYD targets a 15% cost reduction for its second-generation blade battery, which will launch in the first half of 2025, a source familiar with the matter told CarNewsChina. BYDβs blade battery 2.0 will have an energy density of up to 210 Wh/kg and support 16C peak discharge.
BYD will offer a short blade format for its second-gen lithium iron phosphate battery (LFP) with 160 Wh/kg energy density, a maximum discharge rate of 16C, and an 8C charge rate. The long blade format will have energy density up to 210 Wh/kg and support an 8C discharge rate and a 3C charge rate.
C rate is a measure of how quickly a battery charges or discharges relative to its total capacity. It tells us how many times a battery can, in theory, charge within an hour. For example, 1C means the battery can fully charge in one hour, 8C means the battery can charge eight times in an hour, or in other words, it can fully charge within 7.5 minutes.
BYD plans to reduce the cost of the higher energy density version by 15% compared with the current version. The blade battery currently has about 150 Wh/kg energy density.
The lower energy density version, offering higher charge and discharge rates due to reduced resistance, will be priced similarly to the current generation blade battery or slightly higher. This is because production is challenging to scale, and BYD has limited leverage over suppliers, as some critical components are manufactured by only a few companies that hold the upper hand even over BYD.
The battery price war is moving to the upper segment. βCATL slashed the price of VDA-specs LFP batteries from 0.9 yuan/Wh two years ago to 0.35 yuan/Wh, which their sales team is currently promoting,β a source told CarNewsChina.
However, those are batteries with about 2C charging, intended for entry-level EVs around 150,000 yuan (20,000 USD). βCATL is strong with premium NMC batteries, and as they moved to the lower segment of cheaper LFP batteries, we have to counter pressure by offering premium LFP batteries that compete with NMC, but for LFP prices, β the source concluded.
According to Goldman Sachs Research (GSR), battery prices are expected to fall almost 50% by 2026. The average price declined from 153 USD per kWh in 2022 to 149 USD in 2023. By the end of this year, it is projected to fall to 111 USD and to 80 USD by 2026.
βEverybody talks about the EV automaker price war, but no one talks about the battery makers price war, which is even more brutal. For example, one of our customers meets battery cell suppliers every month to renegotiate the priceβ, the source concludes.
BYD launched a blade battery in 2020 with 140 Wh/kg, which was later increased to 150 Wh/kg and has not been updated since. Meanwhile, CATL launched a couple of new LFP products and kept pushing the battery cost down.
In 2024 (Jan β Oct), CATL was the market leader in EV batteries, with 183.02 GWh capacity installed in EVs, up 45.2% from the same period last year. Its market share in China is 46.2% so far in 2024.
CATLβs growth was driven by LFP batteries, which increased 60.2% to 10.7.56 GWh, while NMC battery installations increased by 28.2% to 75.5 GWh compared with the same period last year, according to data monitored by China EV DataTracker.
BYD installed 100.66 GWh of EV batteries in 2024 (Jan β Oct), up 19.4% from the same period last year. Its market share was 24.4% in China. BYD sells almost exclusively LFP batteries, as it has installed only 0.16 GWh of NMC batteries in 2024.
CATL chemistry breakdown to NMC and LFP. Credit: China EV DataTracker
