A 2021 Recap for a Global Battery Leader
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We are all excited about the mass production success of Tesla’s 4680 cell but I don’t think we should underestimate the development happening in China with a Berkshire Hathaway backed company. Thus, I would like to present a recap of BYD’s development in 2021 and summarize its potential for the future.
BYD was founded in 1995 and became the second-largest battery manufacturer in the world in 2003. In the same year, Qinchuan Automobile was acquired and the company entered the automotive industry for the first time. The company’s current business portfolio includes electronics, automobiles, new energy, and rail transportation and is listed on both Shenzhen and Hong Kong stock exchanges.
As of the end of 2021, BYD’s total market capitalization amounted to 780.5 billion yuan, an increase of 50 percent year on year, placing it 16th among Chinese publicly listed companies. The company is also the one with the highest market cap among Chinese automobile manufacturers.
In 2021, the domestic production and sales of new energy vehicles will reach 3.545 million and 3.521 million respectively, and BYD will achieve production and sales of 607,000 and 604,000, with a market share of 17.2%.
Power battery market share in the global market
According to data from the Starting Point Research Institute (SPIR), the world’s installed capacity of batteries will reach 337GWh in 2021, of which BYD will have 28.8GWh, representing 8.5% of the market and ranking fourth globally.
BYD’s installed capacity for energy storage batteries
According to BYD’s report on production and sales, it is expected that the company’s total installed capacity of power and energy storage batteries will reach 37.92 GWh in 2021.
Customers will find that the E-QM5 series of FAW Hongqi are equipped with blade batteries. A pure electric model from Changan, along with two other models from Jinkang and BAIC, are also equipped with BYD blade batteries. It is also reported that BYD has been in contact with a number of major international automobile companies, including Tesla, Ford, Volkswagen, Daimler, and Hyundai.
What BYD did in 2021
Operating income for the first three quarters of 2021 was 145.2 billion yuan, an increase of 38.25% compared to the same period last year; the net profit attributable to the shareholders of the listed company was 244 million yuan. The company reported revenues of 54.3 billion yuan in the third quarter, an increase of 21.98% over the same period last year. The net profit attributable to shareholders was 1.27 billion yuan. It is projected to generate 181.7 billion yuan revenue in the 2021 outlook.
Production capacity of BYD power batteries
BYD has deployed Xining in Qinghai (24GWh), Huizhou (2GWh), Pingshan in Shenzhen (14GWh), Bishan in Chongqing (45GWh), Xi’an (50GWh), Ningxiang in Changsha (20GWh), Guiyang in Guizhou (20GWh), and Bengbu in Anhui (20GWh) , Jilin Changchun (about 30GWh), Anhui Wuwei (40GWh), Shandong Jinan (30GWh), Anhui Chuzhou (20GWh), Yancheng Sheyang (30GWh), Jiangxi Fuzhou (15GWh), Zhejiang Shaoxing (30GWh) and other production bases, the total production capacity Over 430GWh, in addition to a joint venture with Changan to build 10GWh.
By the end of 2020, BYD’s production capacity reached 65GWh, 135GWh by the end of 2021, and is expected to reach 285GWh and 430GWh in 2022 and 2023, respectively.
Within the next two years, BYD plans to expand 8 production bases in Jinan in Shandong, Wuwei in Anhui, Yancheng in Jiangsu, Wuhan in Hubei, Shaoxing in Zhejiang, Ningbo in Zhejiang, Chuzhou in Anhui, and Fuzhou in Jiangxi through acquisition, renovation and new construction, with a total new production capacity of 205GWh.
Blade Batteries: a brief overview
BYD released the blade battery in March 2020, which is packaged in an aluminum case. Single cells have a length of 96 cm, a width of 9 cm, and a height of 1.35 cm. These cells are arranged in an array in the battery and inserted like a blade, within the package. For the first time, BYD Han will be equipped with the blade battery in August 2020.
A lithium iron phosphate battery system is used in the blade battery system, and the cells are flattened, and the battery pack incorporates no-module technology, which can greatly enhance grouping efficiency of the batteries, as well as increase the utilization rate of the internal space to approximately 60%. In comparison with traditional lithium iron phosphate batteries, the blade battery has an improved discharge rate, a charging cycle life of more than 4,500 times, and an operational life of up to 8 years and 1.2 million kilometers. The blade battery is safe and passes the acupuncture test. According to the test, there is no open flame, no smoke, and the surface temperature is only 30–60°C after acupuncture.
BYD’s pure electric series are currently all powered by blade batteries, and the development of the second-generation blade battery technology is in progress.
This article is for informational purposes only. No affiliation here. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.
