BYD’s Founder and Chairman Wang Chuanfu has stated that the company’s “Blade Battery,” a smaller lithium-iron-phosphate battery, is safer than competing products on the market and won’t catch fire.

BYD has claimed that the “Blade Battery” uses Lithium Iron Phosphate (LFP), which has undergone testing through the nail penetration method. In that particular test, a nail was driven through the centre of the battery cell until it penetrated the other side, causing a short circuit inside the battery cell.

BYD had earlier reported that its Blade battery had demonstrated higher safety standards in the test as compared to Lithium Nickel Manganese Cobalt Oxide and Lithium Nickel Cobalt Aluminium Oxide batteries. The product’s design resembles that of a blade, making it thinner and longer than conventional batteries. The design also enables Blade batteries to dissipate heat more quickly than typical rectangular cell batteries.

If a short circuit happens within a cell, the affected component does not affect other cells, thus preventing continuous electrical short circuits, BYD claimed. The blade battery has been designed using cell-to-pack technology (CTP), which means each cell can be directly packed without the need for module packing, allowing for more cells to be added. The design also enhances the structural strength of the electric vehicles by serving as a reinforcement material for their frames.

The Chinese automaker also stated that the Blade batteries have lower production costs compared to NMC (Lithium Nickel Manganese Cobalt Oxide) batteries. Its decomposition temperature is around 518 degree Fahrenheit (270 degree Celsius) as compared to the NMC’s 410 degree Fahrenheit (210 degree Celsius) and NCA’s 302 degree Fahrenheit (150 degree Celsius).

The higher decomposition temperature makes it safer for use. Moreover, once damaged the LFP Blade battery releases less heat – approximately 200 J/g, whereas NMC and NCA batteries can release up to 600 and 900 J/g of heat, respectively.

BYD, which envisions itself as the main rival of the Elon Musk-led Tesla, has emerged as a pioneer in the fields of electric vehicles and renewable energy. It is set to overtake Volkswagen as China’s biggest carmaker in 2024 after outselling the German company’s joint venture units in the first 10 months, as the growing popularity of battery-powered cars strengthens its market dominance.

The Shenzhen-based company delivered 2.9 million pure electric and hybrid cars to customers worldwide in 2024 through October, a 35% increase from a year earlier. Sales are likely to top 4 million units this year, according to data provider CnEVPost, with year-end promotions likely to fire up sales.

Volkswagen’s factories in China have delivered 2.23 million electric vehicles and petrol-powered cars in the first 10 months of 2024. The German car maker has been the market leader in China’s car industry since it started local joint ventures with SAIC Motor and FAW in 1984.

BYD also outsold Tesla in Q3 2024 in terms of volume and revenue. It delivered 1.13 million electric cars in the three months to September 30, a 38% jump from a year earlier. Tesla recorded 462,890 units in the same period. Revenue jumped 24% to 201.1 billion yuan (USD 28.2 billion) versus Tesla’s USD 25.2 billion.

The Shenzhen-based company also achieved a new milestone when it churned out its 10 millionth unit after being more than two decades in the business. The Denza Z9 was delivered to Feng Ji, the founder and CEO of Game Science, which produced the hit video game Black Myth: Wukong.

“The achievement shows that China has evolved from an automotive powerhouse based on volume to a leader based on manufacturing heft. China’s automotive sector is now on track to further high-quality growth,” BYD said in a statement.

BYD, which counts Warren Buffett’s Berkshire Hathaway as a minority shareholder, is led by Wang Chuanfu, a former government-sponsored researcher, who established the company in 1995 as a producer of rechargeable dry cells and batteries for mobile phones, before venturing into car manufacturing in 2003.

The venture’s first vehicle was the F3, a bare-bones minicar with a 1.6-litre petrol engine that sold for as little as 40,000 yuan (USD 5,522) when it hit the market in 2005. BYD unveiled its first electric car in 2008, a plug-in hybrid known as F3DM, which was priced at 149,800 yuan.

“Banking on its value-for-money plug-in hybrid and pure electric cars, BYD has been drawing thousands of first-time EV buyers in China. Its budget models are becoming the first choices for many young, price-conscious motorists,” said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto.

Who Is Wang Chuanfu?

In 1995, Chuanfu established BYD in Shenzhen, Guangdong Province, marking the start of his business career. BYD’s initial focus was on producing rechargeable batteries for the quickly expanding mobile phone market. The business was among the biggest producers of batteries worldwide by the early 2000s. Chuanfu, who saw the potential of electric vehicles, guided BYD into the automotive industry in 2003 by purchasing Tsinchuan Automobile Company, with the goal of “using our technological innovations to help solve the world’s energy problems.”

BYD underwent a dramatic change as a result of this calculated move, going from a battery manufacturer to a major force in the automotive industry. The venture eventually established itself at the vanguard of the new energy vehicle (NEV) revolution under Chuanfu’s direction by starting to design and manufacture a variety of automobiles, including electric and hybrid models.

BYD’s market value surpassed one trillion yuan on June 10, 2021, when its share price jumped by almost 7%, setting a new record high. It also became the first company to reach the prestigious trillion yuan market value club as a result of the milestone.

The company’s strong growth in the renewable energy sector and its leadership in the electric vehicle industry are reflected in its impressive stock market performance. BYD’s success has been largely attributed to its advancements in battery technology, dedication to environmentally friendly transportation options, and calculated growth in both domestic and foreign markets.

BYD’s EV technological innovations are a prime example of Chuanfu’s dedication to innovation. New benchmarks for longevity, safety, and efficiency were established by BYD’s proprietary battery technology, especially the development of lithium iron phosphate batteries. And yes, these EVs are affordable as well, staying true to Chuanfu’s words, “Our dream is to build the world’s most efficient and sustainable transport system.”

Under his direction, BYD has introduced a wide range of electric vehicles, from passenger cars like the BYD Tang and BYD Qin to commercial vehicles like electric buses and trucks.

Transcending beyond the EV space, Chuanfu also led BYD into the renewable energy space after realising how closely energy and transportation are related. Energy storage devices, solar panels, and creative approaches to the distribution and management of renewable energy are now produced by the company. Because of its integrated approach to transportation and energy, BYD has emerged as a pioneer in offering complete green energy solutions.

Under Chuanfu’s direction, BYD has expanded internationally, setting up production facilities and joint ventures in strategic areas like South America, Europe, and the United States. Around the world, cities have adopted BYD’s electric buses and cars as standard, which helps to create cleaner urban areas.

In early 2009, Chuanfu’s reported net worth was USD 3.4 billion, placing him 408th on Hurun Report’s Global Rich List 2014. By the end of the year, the figure grew to USD 5.1 billion and he was crowned China’s richest man on the Hurun Report. This was due largely to a five-fold increase in his company’s value after Berkshire Hathaway bought 225 million new shares of BYD in 2008. In November 2021, Forbes reported that Wang’s wealth had increased to USD 23.5 billion, making him the 14th richest person in China.

BYD Faces Price War

As per the reports, BYD has asked its suppliers to cut their prices, in a sign that a brutal price war in the world’s largest auto market is set to escalate. Citing a leaked email dated November 26 from BYD, Chinese digital news outlet thepaper.cn reported that the Chinese electric vehicle giant had asked one unidentified supplier to reduce its prices by 10% from January 1.

However, a BYD executive told on his Weibo account that the Chinese automaker sets price reduction targets for suppliers when making large-scale purchases, adding that these “targets” were negotiable and not mandatory.

“Annual price negotiations with suppliers are a common practice in the automotive industry,” BYD’s Brand and Public Relations Department general manager Li Yunfei said in his post.

BYD has become a relentless discounter in the price war that Tesla started in the world’s largest auto market in 2023. The aggressive stance has helped the Chinese automaker unseat its American rival as the world’s biggest EV seller.

BYD topped China’s auto sales rankings with a 15.8% share of the overall market in the first nine months, while its sales of electric vehicles and plug-in hybrids accounted for more than a third of the country’s total, industry data showed.

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