Chinese auto manufacturer BYD Company Limited BYDDF, which also has a thriving battery business, is gearing up to supply batteries to rival electric vehicle manufacturer Tesla, Inc. TSLA.
What Happened: BYD, which has the backing of billionaire investor Warren Buffett, will begin selling its blade battery to Tesla in the second quarter of 2022, the CnEVPost reported, citing local Chinese media cls.cn.
The Tesla model, which will use the blade battery, is reportedly now in the C sample testing phase.
BYD launched the blade battery in late March 2020 as a solution for fire hazards associated with the more commonly used lithium-ion batteries.
The desire to increase range leads EV makers to chase energy density, compromising on safety. Lithium-ion batteries pose the risk of becoming unstable and catching fire.
Additionally, in a blade battery, singular cells are arranged together in an array and then inserted into a battery pack. Due to its optimized battery pack structure, the space utilization of the battery pack is increased by over 50% compared to conventional lithium iron phosphate block batteries.
The "blade battery," unveiled in March last year, is a power battery that BYD claims will not catch fire, and was first used in the flagship Han EV model that was launched in June 2020.
Why It's Important: BYD was ranked eighth globally in terms of EV battery volume for the period between Jan and May, accounting for roughly for 1% of the total, according to SNE Research. The Chinese company is seeing strong growth.
BYD's battery business is likely to receive a shot in the arm from the Tesla relationship.
At last check, the U.S.-listed shares of BYD were rising 1.27% to $35.90. Tesla shares are higher for the seventh straight session and were adding 0.53% at $714.69.
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