This week, BYD, the world’s largest electric vehicle (EV) maker, started building its first sodium-ion battery plant, investing $1.4 billion with an annual capacity of 30 GWh.
While BYD recently surpassed Tesla as the leading global electric car manufacturer, it is also a significant player in the battery manufacturing sector. Despite lithium-ion being the primary vehicle battery, companies like BYD are exploring new chemistries for lower costs, extended range, faster charging, and reduced raw material usage.
BYD’s Blade Battery, which powers EVs from Tesla, Hyundai, Toyota, Ford, and others, is an LFP battery designed by BYD’s FinDreams. FinDreams began producing the Blade Battery in 2020 and, in June last year formed a joint venture with Huaihai Holding Group to venture into sodium-ion batteries.
The company aspires to become the leading global supplier of sodium battery systems. Huaihai, recognizing the economic value of sodium batteries, started exploring them several years ago.
BYD Starts Building Landmark Sodium-Ion Battery Plant
Sodium-ion batteries provide a more affordable option than lithium batteries, but they come with a trade-off of lower energy density. These batteries are particularly beneficial for economical small cars or two-wheelers without higher energy density.
FinDreams and Huaihai agreed to construct BYD’s initial sodium-ion battery plant in Xuzhou in November.
This isn’t the first joint project between BYD and Huaihai. They teamed up in November 2022 to construct a plant for producing Blade batteries. Construction started in January, and they aim to kick off early production by March.
There were speculations in 2022 that BYD would start manufacturing sodium-ion batteries in 2023, with the Seagull electric vehicle being the first to adopt this technology. However, the Seagull, launched in April, features an LFP Blade Battery.
The recent development follows the launch of JAC Group’s YiWei, a new electric vehicle (EV) brand supported by Volkswagen, as they began producing their first sodium-ion battery-powered EV. The initial model was produced last week, with deliveries scheduled to commence this month.
Xia Shunli, the Chairman of Yiwei Tech, emphasized that sodium-ion batteries offer a cost-effective solution, fostering the widespread adoption of electric vehicles.
In April, battery giant CATL announced that Chery Auto’s iCar brand would be the first to integrate its sodium-ion batteries.
