The production and sales of lithium iron phosphate with blade battery in BYD pure electric vehicle is expected to maintain high growth.

In response to investors' questions on the "Interactive easy" platform of the Shenzhen Stock Exchange on March 15, BYD said: the company's pure electric models are fully equipped with blade batteries, which can be charged and discharged more than 3000 times.

Photo source: Shenzhen Stock Exchange "Interactive easy"

Blade battery is a battery product released by BYD on March 29, 2020. Compared with the traditional battery pack with only 40% space utilization, the BYD blade battery pack can achieve more than 60% space utilization, which can greatly improve the mileage. In addition, BYD blade battery is based on BYD lithium iron phosphate technology, its volume energy density is the same as that of mainstream ternary lithium battery, and it stores about the same amount of electricity at the same volume, but it is much safer than ternary lithium battery.

Wang Chuanfu, chairman and president of BYD Group, once said: "the 'blade battery' reflects BYD's determination to completely put an end to the safety pain point of new energy vehicles, and is more capable of leading the global power battery technology back to the right path." completely erase the word 'spontaneous combustion' from the dictionary of new energy vehicles. "

The BYD EV, the first model with a blade battery, was officially launched in July 2020. In November of the same year, BYD Han EV achieved monthly sales of more than 10,000, and has been in a state of hot sales ever since. In 2021, BYD sold a total of 603783 new energy vehicles, a year-on-year increase of 218.30%, exceeding the online target of 400000 new energy vehicles. In February, BYD sold a total of 91078 vehicles, up 335.22% from a year earlier, of which 88283 new energy vehicles were sold in the month, up 752.56% from a year earlier, and only 2795 fuel vehicles were sold.

In 2022, BYD set an annual sales target of 1.2 million vehicles, a year-on-year increase of 62.13%. It is also worth mentioning that in the target planning of 1.2 million vehicles, the sales of pure electric models are 600000, and the expected target of plug-in hybrid models is 50-600000, the proportion of fuel vehicles is almost negligible.

In the case that all its all-electric models are fully equipped with blade batteries, BYD must lay out the battery capacity in advance in order to achieve the above goals. As a result, since last year, BYD has begun to actively expand the capacity of blade batteries. According to statistics, BYD has successively established six major Fudi battery companies, including Chongqing Fudi Battery Research Institute, Wuwei Fudi, Yancheng Fudi, Jinan Fudi, Shaoxing Fudi, Chuzhou Fudi.

Among them, Wuwei Fudi invests 2.8 billion yuan and has an annual production capacity of 10GWH; Yancheng Fudi has an annual production capacity of 30GWH and the first phase production capacity is 15GWhH, which is planned to be completed and put into production in May 2022; Jinan Fudi has an annual production capacity of 30GWH; Shaoxing Fudi site Shengzhou capacity is uncertain; Chuzhou Fudi Phase I production capacity is 5GWh.

In addition to BYD's previous layout of Qinghai Xining (24GWh), Guangdong Huizhou (2GWh), Shenzhen Pingshan (14GWh), Chongqing Bishan (35GWh), Shaanxi Xi'an (30GWh), Changsha Ningxiang (20GWh), Guizhou Guiyang (10GWh), Anhui Bengbu (20GWh), Jilin Changchun (planned investment of 10 billion, production capacity of about 20GWh) and other production bases, preliminary statistics show that BYD's capacity planning will reach nearly 300GWh.

February Lithium Iron Phosphate Battery loading rose sharply compared with the same period last year. Photo Source: China Automotive Power Battery Industry Innovation Alliance

In addition, all BYD pure electric models are fully equipped with blade batteries, which will further widen the gap between lithium iron phosphate and ternary batteries in production and sales. According to the latest statistics from the China Automotive Power Battery Industry Innovation Alliance, in February, the total number of vehicles loaded with ternary batteries in China totaled 5.8 GWH, up 75.6 percent from the same period last year, down 19.9 percent from the previous year; and lithium iron phosphate batteries totaled 7.8GWhs, up 247.3 percent from the same period last year and down 12.3 percent from the previous month. In terms of production, the output of ternary batteries in February was 11.6%, accounting for 36.6% of the total output, an increase of 127.2% over the same period last year and 7.6% from the previous year; the output of lithium iron phosphate batteries was 20.1%, accounting for 63.1% of the total output, up 364.1% from the same period last year and 6.7% from the previous year.

Since last year, under the influence of multiple factors, such as technology iteration, cost advantage and subsidy retrograde, car companies, including Tesla, Xiaopeng, and Weilai, have begun to adopt lithium iron phosphate batteries, which has been silent for many years. This makes lithium iron phosphate, which has been silent for many years, surpass three yuan in loading and output in one fell swoop. Now, in the sharp rise in nickel prices, BYD and other car companies to further increase the application of lithium iron phosphate batteries, lithium iron phosphate batteries are expected to continue to maintain rapid growth.