Contemporary Amperex Technology Co. Ltd., the world’s biggest producer of batteries for electric vehicles, unveiled the latest versions of its cells, playing up the durability and range of its products as the perceived limits of EVs still stop many consumers from making the switch.
CATL teased the latest innovations at its Tech Day on Monday in Shanghai — a multi-hour event that took place in a converted warehouse on the outskirts of China’s financial capital. Hundreds of media, influencers and industry watchers crowded in to hear from CATL Chief Technology Officer Gao Huan and to catch a glimpse on the big screens of billionaire founder and chairman, Robin Zeng.
Zeng only took to the stage near the end of the event, to promise it would become an annual occurrence and remind people that CATL has “never defined itself as a battery manufacturer but a pioneer of the clean energy system.”
Even so, one of the main products CATL talked about was an upgraded version of its Shenxing battery, a cell it says can now offer 520 kilometers (323 miles) of range from just five minutes of charging time. BYD Co., which is primarily an automaker but which also makes its own batteries and semiconductors, recently launched a car system it says can charge a vehicle for 400 kilometers in about the same time.
What Bloomberg Intelligence Says:
CATL’s next-generation Shenxing batteries highlight its deep R&D resources and could prompt robust orders as automakers scramble to stay competitive after BYD’s high-profile launch last month. Upgraded technologies at CATL and BYD, which together control 70% of China’s EV-battery market, look set to power more mass-market EVs with fast-charging capabilities. — Joanna Chen, BI China auto industry analyst
CATL batteries can already be found in a wide range of automakers’ EVs. Tesla Inc. is one of its top customers and it has a technology licensing agreement with Ford Motor Co. Its hold on the world’s market for EV batteries is hard to overstate. CATL commands a share of around 38.2% based on data for the first two months of the year, according to SNE Research. Its nearest competitor BYD is at 16.9%.
Also a popular topic at Monday’s event, taking place a few days ahead of China’s annual premier auto show, were sodium-ion batteries.
CATL said its sodium-ion cell, called Naxtra, is ready for commercialization and has been tested under a number of extreme circumstances, including very cold weather and fire. Even after being placed in an ice chamber with a temperature of minus 40 degrees Celsius, Naxtra had zero power degradation, executives said.
Naxtra should give a hybrid vehicle around 200 kilometers of range, stretching to 500 kilometers for an EV.
Sodium-ion batteries offer several advantages including being more cost effective due to the abundance and lower price of sodium compared to lithium. They also have higher safety and stability, considering sodium is less reactive, reducing the risk of fire hazards.
Company executives believe sodium-ion could eventually take up half of the market share that’s currently dominated by lithium, iron and phosphate batteries led by the likes of CATL and BYD.
CATL also unveiled a range of dual-power batteries that can offer a maximum 1,500-kilometer range on a single charge, a new high bar in a Chinese-led industry that’s continuing to pursue innovation in a cut throat matter. CATL said it’s able to achieve such a range using a regular super-fast charging battery cell and a separate auxiliary cell side-by-side to give an upgraded performance.
Speaking at a press conference later after the main event had wrapped, executives threw parting shots at rivals and spoke about the pricing wars that are chipping away at revenue.
The “rat race” in the battery price war isn’t healthy but a rat race is needed in terms of “development of the product,” Ouyang Chuying, co-president of CATL’s research and development division, said. “We hope the national standard can be very high and get rid of products that are poor quality.”
CATL’s innovation and success in car batteries has also given it the ability to push into more ambitious areas, such as electric vertical takeoff and landing craft, or eVTOLs.
While a battery for an airborne craft wasn’t a topic of Tech Day, CATL has said its eVTOL, powered by one of its electric cells, can fly up to 250 kilometers — the equivalent of New York to Philadelphia, or Brussels to Amsterdam — at speeds of 200 kilometers per hour.
CATL reported a 33% jump in first-quarter earnings earlier this month, with net income of 14 billion yuan ($1.9 billion) versus estimates of 13.8 billion yuan defying a drop in the prices of the cells that power EVs. Revenue grew just over 6% year-on-year to 84.7 billion yuan, short of estimates for 95.5 billion yuan.
Its shares are down around 13% since January.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
