BYD to spin off power battery Module starts Market Competition

Shanghai May 10th, 2017 Gasgoo-Recently, interior news comes around that BYD will split its electronic business for independent operation, shocking the whole market. It means that BYD will break out the previous production and operating methods, and that BYD’s proud power battery module will provide supply to the market. Other auto companies will get chances to equip with BYD batteries.

It’s the first time that BYD will sell batteries to domestic market. It’s learned that BYD has the current power battery capacity of 16GWh, which will meet further expansion in the future. BYD invested RMB 245m in Qinghai Province to establish a new company, focusing on developing lithium resources in the salt lake and providing guarantee for the raw materials’ demand. In the same time, Qinghai’s battery factory is also on construction, with expected capacity of 10GWh.

The capacity expansion shows BYD’s future plan in battery module. BYD sells 100,178 units’ alternative energy vehicles in 2016, doubling Geely Auto in number. The LFP battery used in BYD’s passenger vehicles enjoys good reputation in terms of technological strengths in the market. But the mainstream choice made by most passenger vehicles is ternary lithium battery. BYD also equips with ternary lithium battery on Qin and Tang at the beginning of this year.

Competitors’ attitudes should also be fully considered. Whether they are willing to use BYD’s battery or not is also a question. Recently, SAIC also plans to establish two joint ventures with CATL Battery, a globally leading battery supplier, for the R&D, production and sales of batteries.