Tesla, is world’s largest EV manufacturer, is now in stories for its talk with BYD. BYD is China’s one of the EV manufacturers who are competing with Tesla in the country. Tesla currently uses lithium-ion batteries, and BYD is all set to supply them with their blade batteries. These blade batteries were introduced by BYD last year. Blade batteries are a type of lithium iron phosphate batteries. Rumors suggest that BYD will supply these batteries by the second quarter of the upcoming year. These were leaked by people related to Tesla and BYD. Reports also indicate that the testing phase of Tesla cars equipped with Blade batteries is in the final stage.
At the same time, nobody from Tesla or BYD cared to speak about the same. They replied that they didn’t have any official information regarding this. As said, Tesla has been using batteries provided by CATL for a long time. Tesla itself is the reason for the expansion of the CATL. The reason why Tesla is aiming at Blade batteries is due to its safety. BYD has opened the market for ternary lithium batteries. With BYD agreeing to supply blade batteries, the pricing of Tesla will gradually decrease in the market.
BYD & its Blade batteries!
Last week, BYD launched its new variant for BYD HAN EV with a range of 506 KM to target Tesla Model 3. BYD’s confidence in rivaling Tesla comes from its advancements in its battery technologies. Marketers in China say that the cost of batteries from the CATL is 0.57 yuan/Wh, while the industry average cost of these batteries is 0.65 yuan/Wh. And the price of BYD blade batteries is 0.42 yuan/Wh. Tesla will reduce around 15% in costs by going with BYD blade batteries. This will help Tesla to reduce its price of vehicles. Apart from the supply of batteries from BYD to Tesla has more advantages.
Back on August 3, Wuwei Fudi Battery Co Ltd was established and is 100% controlled by BYD, i.e., it is a wholly-owned subsidiary of BYD. The new plant will be manufacturing in the Anhui province, and it will be supplying batteries to Tesla once it is built. Earlier, BYD has clarified that it has replaced its vehicles with Blade batteries. The brand is expanding its supply to meet future demand, which Blade will meet. BYD is identifying it as a car company even though it has now entered into more segments. On May 18, 2020, BYD’s Chairman and Legal representative, Wang Chuanfu, resigned and delegated his power. BYD has split itself into different parts and owns five independent companies. Read more about EVs by clicking here.
