Investigation

In a bid to counter BYD's dominance in the Lithium Iron Phosphate (LFP) sector, Chinese battery giant Contemporary Amperex Technology Co. Limited (CATL) has unveiled the Shenxing LFP battery. The new battery, set to go into mass production by the end of 2023 and commercially available in Q1 2024, boasts several innovative features that make it a game-changer in the electric vehicle (EV) industry.

The Shenxing battery is the world's first LFP battery that supports 4C charging, allowing electric vehicles equipped with it to add up to 400 km of range in just 10 minutes. This ultra-fast charging capability, coupled with a claimed ability to be charged to 80% at -10°C, addresses the common issue LFP batteries face in cold weather environments.

CATL, a leader in upper-market Nickel Manganese Cobalt (NMC) batteries, has been experiencing a shift in demand towards LFP batteries due to their lower cost and absence of cobalt, nickel, or manganese. Many EV makers, including Tesla, are switching to LFP batteries for their mid-range electric vehicles.

The first EV maker to use the Shenxing battery will be Avatr, a joint venture of CATL and Changan with Huawei's participation. The Shenxing battery is equipped with a new advanced battery management system (BMS) and features a new graphite anode, new electrolyte formulation, thinner and safer separator, and better ion transport.

In addition to the Shenxing battery, CATL has also been working on sodium-ion batteries. These batteries, while having lower energy density than LFP, perform well in cold weather and don't need lithium. The first customer to use CATL's sodium-ion batteries will be Chery's new iCar brand. The first production version of these batteries will be installed in mass-produced EVs in Q4 2024.

CATL currently holds 40% of the market with an installed capacity of 13.5 GWh, but it is not the number one manufacturer of LFP batteries, with BYD holding a larger market share. Despite this, the introduction of the Shenxing battery and the upcoming sodium-ion batteries positions CATL well to challenge BYD's dominance in the LFP sector.

In other news, CATL's Condensed battery, unveiled in April, is intended for airplanes and not EVs, with an energy density of 500 Wh/kg. In June 2022, CATL unveiled its Qilin battery. The first customer was Geely, and the Qilin pack gave its Zeekr 001 SUV fastback a range of 1000 km. The Qilin battery is an NMC type with an energy density of 255 Wh/kg and a volume utilization efficiency of 72%.

As CATL continues to innovate and expand its battery offerings, the company is poised to play a significant role in the global transition towards electrified transportation.