Chinese EV manufacturer BYD, which has surpassed Tesla in EV sales, is a major threat to traditional automakers

BYD , a major Chinese electric vehicle manufacturer, has made great strides, surpassing Tesla in EV sales in the fourth quarter of 2023 (October to December). IEEE Spectrum, a media outlet in the electrical and information engineering field, reports that BYD, which is steadily expanding outside China, is posing a major threat to traditional automakers.

BYD's EV Dream May Be Legacy Automakers' Nightmare - IEEE Spectrum
https://spectrum.ieee.org/byd-ev-china-supercar

In February 2024, BYD released the 1287 horsepower supercar 'U9' with the expectations of a luxury car brand. BYD claims that the U9's maximum speed will reach 309 km/h and accelerate to 100 km/h in less than 2.4 seconds, and the price is 1.68 million yuan (about 35 million yen) and delivery is scheduled for summer 2024.

The U9 is also equipped with an excellent suspension system, making it stable enough to run on three wheels without one of the four wheels, as well as allowing it to sway and jump. You can see how U9 actually 'dances' using its suspension in the video below.

BYD DiSus System | Yangwang Dancing U9 - YouTube


BYD manufactures not only luxury cars but also low-priced cars, and the Qin Plus DM-i, a plug-in hybrid car that was released in February 2023, was priced at 99,800 yuan at the time of release. It was extremely cheap (approximately 2,070,000 yen), and orders exceeded 25,000 units within 5 days of its release. Furthermore, in the new version of Qin Plus DM-i announced by BYD in February 2024, the suggested retail price has been lowered to a whopping 79,800 yuan (approximately 1.66 million yen).

Many electric vehicle manufacturers use ternary lithium-ion batteries (NCM batteries) that use rare metals such as cobalt and nickel . However, child labor in the Central African country where cobalt is produced is considered a problem , and cobalt is expensive, so there are issues with production costs.

BYD, on the other hand, uses a different type of battery: lithium iron phosphate batteries (LFP batteries), which do not use cobalt or nickel. LFP batteries do not use rare metals, so they are cheaper and have fewer ethical issues. They also have the advantage of being able to be charged to 100% without reducing battery life, and are less prone to thermal runaway due to increases in battery temperature. The disadvantage is that the energy density is lower than that of NCM batteries, so the range will be shorter.

In recent years, major manufacturers such as Tesla and Hyundai have also been paying attention to LFP batteries, and Tesla is expanding the use of LFP batteries in large EV trucks and low-priced vehicles. However, the market and supply chain for LFP batteries is said to be dominated by Chinese companies such as BYD and Ningde Era New Energy Technology (CATL) . In August 2023, CATL announced the world's first LFP battery that can achieve a driving range of over 700km on a single full charge.

Major EV battery manufacturer CATL announces ultra-fast charging battery that can travel 400 km with 10 minutes of charging, shipping will start in 2024 - GIGAZINE

The ambitions of BYD and other Chinese companies are not limited to LFP batteries, but they are also starting to manufacture sodium-ion batteries that do not even use lithium. In 2023, BYD's subsidiary signed a construction contract for a sodium ion battery factory for a total of $1.4 billion (approximately 210 billion yen) , and JAC Group's Yiwei will build an EV equipped with sodium ion batteries in January 2024. We have started delivery of .

In the United States, during the Donald Trump administration, it was decided to impose a 25% tariff on Chinese-made cars, and this has hindered BYD from entering the American market. However, BYD is already establishing a foothold in the Australian and European markets, and analysts and automakers believe it is only a matter of time before it eventually expands into the United States. IEEE Spectrum expressed the view that the day when automakers such as Tesla and GM will be forced to compete with BYD will not be far away.