In the U.S., Tesla may be at the forefront of the electric vehicle revolution, but abroad, the carmaker has some serious competition. In China, the world’s largest EV market, Tesla has been losing ground to domestic automakers who are increasingly building better cars at unbeatable prices, and chief among them is Warren Buffett-backed BYD.
In the fourth quarter of 2023, BYD dethroned Tesla as the world’s top EV maker, selling more battery-powered vehicles than its U.S. rival.
“BYD has grown into this powerhouse in the new energy vehicle industry,” CNBC’s Beijing correspondent Evelyn Cheng said.
“When you look at the monthly rankings, they’re always at the top.”
“They are one of the top companies in the world building lithium-iron phosphate batteries,” Sam Abuelsamid, principal analyst at Guidehouse Insights, told CNBC. He also explained the advantages over lithium-ion batteries, saying they are long-lasting and “cost about 30-40% less per kilowatt hour to manufacture.”
Part of BYD’s mass appeal is price. Many of its cars undercut the competition, with several models starting under $20,000.In Munich just a few months ago, they launch the Seagull, priced at $11,500, You have to double that price and then some to get an entry-level vehicle here in the United States and in Europe. So very competitive in the segment of $35,000 and under.
BorgWarner’s CEO, Frédéric Lissalde, said LFP batteries are “an exciting technology” that’s becoming increasingly important due to its lower prices.
BorgWarner announced the strategic agreement with BYD’s battery unit, FinDreams. Under the deal, the auto supply giant will be “the only non-OEM localized manufacturer with rights to localize BYD’s Blade LFP battery packs for commercial vehicles.”
In addition to receiving BYD’s Blade cells to build battery packs, BorgWarner will also gain rights to FinDreams battery’s IP, including the design and manufacturing process.
“We believe FinDreams Battery is right for BorgWarner in this area, with its 20-plus years of experience and success in LFP batteries for the mobility sector across China and Europe,” Lissalde explained.
