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BYD will actively supply traction batteries to third-party electric vehicle manufacturers
The Chinese electric vehicle market has its own specifics. BYD takes the third place in it, but mainly supplies electric buses outside the country, while being the fourth largest manufacturer of traction batteries in the world with a share of slightly less than 10%. From the second half of the year, BYD batteries will be supplied to competitors.
Image source: Reuters
It is natural that the initiatives of the US, European and Japanese authorities to systematically abandon the sale of new cars with internal combustion engines form a steadily growing demand for electric vehicles, and the main limiting factor in their production is just the shortage of traction batteries and their high cost. Both problems can be solved by increasing the production of batteries, and BYD here clearly cannot rely only on sales as part of its own electric vehicles.
According to Nikkei Asian Review, the Chinese company will begin shipping lithium batteries to third-party electric vehicle manufacturers from the second half of this year through its subsidiary Fudi Battery. The latter, if it is necessary to attract additional capital, can go to a public offering of shares, as the source notes. The main competitors of BYD in the global market are the Chinese CATL and the South Korean LG Energy Solution (LG Chem), which supply batteries to Tesla and many other electric vehicle manufacturers. Prior to that, BYD supplied its batteries either for electric vehicles and electric buses of the same name, or through joint ventures with other companies. BYD ended the last fiscal year with a 26% increase in revenue, while net profit increased 2.6 times. In addition to the production of traction batteries, the company specializes in the production of batteries for mobile devices.