For the second time in weeks, BYD, the Chinese rival to Tesla backed by Warren Buffett, has rocked the global auto sector.
On Monday, Wang Chuanfu, the Shenzhen-based group’s billionaire founder, unveiled a new charging system that could add about 470km in range to BYD’s own batteries in just five minutes.
The release of the so-called Super e-Platform has thrust BYD to the front of an industry-wide race to develop battery cells for electric vehicles that will make refuelling electric vehicles as fast as filling up cars with petrol or diesel. It follows the February announcement of its “God’s Eye” advanced driver-assistance system being made available on all its models for free.
What is the new advance?
According to BYD, the platform has charging power of 1,000 kilowatt and takes up to 1,000 amps. This means it can charge batteries at a rate of about 2km per second and add 400km in range in five minutes.
The technology release implies that BYD has cleared several hurdles in ultrafast charging, including safety risks, shorter battery lifespans, and the extra costs associated with installing superfast chargers.
This will help deal with consumer complaints that EVs, when compared to traditional cars with internal combustion engines, take too long to charge and add to their “range anxiety” fears about running out of charge on longer journeys.
Shay Natarajan, partner at Mobility Impact Partners, a private equity fund, said BYD was using a more sophisticated battery cooling system compared with western carmakers.
“This lets the battery reach peak charging power faster and sustain that peak power longer during the charging cycle, thus increasing the average charging power during the charging cycle and allowing for significantly faster charging,” she said.
Natarajan added that BYD also appeared to have made further battery improvements, most probably solid electrolyte technology in combination with “silicon in anode” technology. These advances would help to “significantly” increase the charge and discharge rate of the battery.
How far behind are BYD’s rivals?
Tesla’s supercharger system is among the largest charging networks in the world, and was one of the reasons the company enjoyed such a commanding lead in electric vehicles for a long time.
But the charging capabilities of the network do not match what BYD is promising. Currently, it allows Teslas to be charged up to 200 miles (320km) in added range in 15 minutes. Tesla’s share price dropped more than 5 per cent following BYD’s announcement.
Among other carmakers, Germany’s Mercedes-Benz recently unveiled its new all-electric CLA compact sedan, which can be charged for up to 325km within 10 minutes using a fast-charging station.
A new type of battery produced by rival BMW also promises 30 per cent faster charging, but even then it says only 300km in range could be added on a 10-minute recharge.
Possibly the key challenger to BYD is Chinese battery giant CATL. Last year, the group unveiled its Shenxing Plus battery with a charge time equating to 1km of range per second, or 600km in 10 minutes.
Analysts expect BYD’s rivals to reach similar charging speeds in the coming years, meaning ultrafast charging will become more common in Europe and the US by about 2030.
Will the BYD fast chargers be widely available in China?
The Han L sedan and the Tang L SUV, named after two Chinese ruling dynasties, will be the first batch of flagship models equipped with BYD’s latest electric vehicle system. BYD has also promised to install about 4,000 chargers initially to support the new fast-charging technology.
Analysts at Goldman Sachs, in a research report, said the new Super e-Platform was “highly competitive” because of its “best-in-class” charging speed and a 0-100km/h acceleration time of less than three seconds.
However, the US investment bank was less bullish on the pace of deployment of the new Han and Tang models, citing pricing that was higher compared with rival models in the market, such as the Zeekr 007 and the Huawei-backed Aito M7.
The starting prices for the Han and Tang cars are Rmb270,000 ($37,356) and Rmb280,000 respectively, during an April presales campaign.
“We expect relatively limited volume impact from these two models in the near-term,” the analysts wrote in a research note.
Should the global auto sector be worried?
The Super e-Platform comes just weeks after BYD announced the release of God’s Eye, which will be offered free, even in its cheapest cars.
Tu Le, founder of consultancy Sino Auto Insights, said the fast-charging announcement coupled with the God’s Eye system had significantly ratcheted up pressure on global automakers.
Unlike any other major global automaker, BYD boasted intellectual property across EV, battery and charging technology, argued Le, which meant the systems could be integrated “much easier and cleaner” than in the rest of the sector.
“Being able to offer these technologies on mass-market vehicles is where the difference between BYD and everyone else is,” he said. “BYD likely put a few global brands out of business.”
However, rising trade barriers and western concerns over the national security risks of Chinese technology mean groups like BYD still face immense uncertainty around market access beyond China’s borders.
Kim Seung-tae, an executive at the Korea Battery Industry Association, pointed out that while rival Korean groups were chasing BYD’s technological progress, “the trade environment, as well as technology, is important”.
“Our companies will maintain their dominance in the US market as long as the IRA [Inflation Reduction Act] is maintained,” he said, referring to the Biden-era legislation in the US which excluded electric vehicles with Chinese batteries from benefiting from tax credits.
Kim added: “Although competition is severe in Europe, we will have more opportunities there as environmental regulations get stronger, given the Chinese weakness in ESG [environmental, social and governance policies] and labour rights.”
