BYD may license EV battery to other automakers

Shanghai, January 20 (Gasgoo.com) Chinese automaker BYD is planning to license its low-cost ferrous / iron electric-vehicle (EV) batteries to other car firms. Car manufacturers in the U.S., Europe and Japan have already expressed interest in this deal, according to Reuters.

Following its release of the first China-made plug-in hybrid electric car F3DM model, BYD has announced that it will release another plug-in hybrid four-door sedan the F6DM and an all-electric MPV the e6 in the U.S. and Europe by 2011.

BYD, standing for Build Your Dreams, claims its batteries are safer, longer lasting and less than half the cost of the lithium-ion batteries favoured by other car makers. Of course, they're also a lot heavier - the e6 uses a 600kg battery pack to achieve a 250-odd mile touring range – and can't hold as much energy as their lithium-ion counterparts.

In early October 2008, BYD hit the financial news when billionaire investor Warren Buffett agreed to buy a 10% stake in the Chinese battery and auto manufacturer for $230 million. BYD's chairman Wang Chuan-Fu said the company is discussing electric car projects with various governments, including that of Israel, as well as regional authorities in China.

With recent announcements from Toyota and Daimler that they are looking to supply battery packs to other car makers, and General Motors setting up a battery testing facility of 31,000 square feet at its Warren, Michigan technical center, batteries and their related tech may soon become as important a part of the business as selling the cars themselves.

GM has also said it intends to "develop battery technology as a core competency just as internal combustion engines have been for the past century." The U.S. auto giant has announced its plan to develop hybrid cars locally for the Chinese market.

According to Nissan Motor's latest global plan to mass produce electric vehicles in 2010, its Chinese venture Dongfeng Nissan is likely to make Nissan electric cars for the China market as well.

Battery technology is considered as one of the core technologies needed for electric vehicles. As a battery and auto maker, BYD stands out in this field, with an obvious advantage over other local or global carmakers who aim to build electic cars.