BYD, a Chinese manufacturer of rechargeable electric or hybrid vehicles, will supply lithium-ion batteries to other companies in the automotive sector with a view to equipping their own models, starting in the second half of 2021.
BYD wants to increase the outlets for its batteries
BYD is now looking to expand its battery manufacturing business by sourcing other companies, instead of just using this key component in its own vehicles. The objective is to improve the efficiency of its production and its competitiveness in terms of supply.
BYD seeks to catch up with the competition
The Chinese manufacturer is also seeking to outsmart the Chinese CATL, and the South Korean company LG Chem, both more powerful competitors in the battery market.
Lithium-ion battery developed by its subsidiary Fudi Battery
BYD will specifically supply other car manufacturers with an on-board lithium-ion battery developed by its battery subsidiary Fudi Battery.
At present, the Japanese newspaper The Nikkei could not obtain further details on the potential buyers, the sale prices and the sales targets of BYD.
Important change in strategy
This move marks a significant change in strategy for BYD. The automaker has so far rarely sold on-board batteries to other companies, except for joint ventures with some car manufacturers and in the area of commercial vehicles.
BYD manufactures batteries and semiconductors as well as electric vehicles, and also exports electric buses to many foreign countries. But it faces stiff competition from more powerful rivals in the electric passenger car and on-board battery markets.
The manufacturer is the third player in the Chinese market for electric vehicles intended for the general public in terms of sales volumes, with a share of just over 10%, while it is the fourth player in the world of on-board batteries in terms of production capacity, with a share of just under 10%.
Towards a separate listing of Fudi Battery?
Li Yunfei, deputy general manager of BYD’s sales subsidiary, said in an interview with Nikkei that the possibility of having a separate listing of Fudi Battery shares was not excluded, with the aim being to speed up the process. expansion of the business.
Our opinion, by leblogauto.com
A strategy that could pay off, especially since the battery is a key component of an electric vehicle. BYD will thus be better able to negotiate with its own suppliers, becoming a major buyer. A policy not devoid of interests when the prices of raw materials could quickly soar.
Sources : Nikkei