Electric Vehicles

China’s CATL to Mass Produce Cheaper M3P Batteries This Year

 

China’s CATL plans to start the mass production and delivery of batteries based on a new materials technology, M3P, the battery giant chairman said on Friday.

The batteries will have greater energy density and perform better than lithium-ion phosphate batteries, a market CATL dominates. They will also be cheaper than nickel and cobalt-based batteries, CATL chief Robin Zeng Yuqun told an online investor briefing, adding that production would start within 2023.

CATL disclosed in August last year that it was working on M3P technology, which can enable an electric vehicle to run 700 km (430 miles) per charge when combined with CATL’s next generation of battery-pack technology.

 

Also on AF: Beijing Regulator Delays CATL’s $5 Billion Swiss GDR Listing

 

Zeng said CATL was finding it difficult to come up with a technologically feasible and competitive product based on solid state batteries, a competing technology that is also being researched by Japan’s Toyota and Germany’s Volkswagen.

CATL, whose clients include Tesla, Volkswagen, BMW and Ford, is the world’s biggest battery maker accounting for more than a third of the sales of batteries for electric vehicles (EV) worldwide.

 

Confident on EV sales

The company’s dominance attracted attention from Chinese President Xi Jinping, who said earlier this month he was both “pleased and concerned” over its rapid rise.

Since last year, a number of CATL’s customers have complained about the effects its market power has had on its prices, with some now opting for alternative suppliers or choosing to develop their own batteries.

Asked on Friday how these rival batteries could affect CATL’s market share, Zeng said that he expected them to have more impact on second-tier and third-tier battery-makers and that CATL would remain the primary battery supplier.

He said new energy vehicle sales in China have been recently affected by inventory clearance efforts by combustion engine car makers ahead of a change in emissions rules, but he remained confident about the overall EV sales outlook.

More than 40 brands have slashed vehicle prices in China in recent months, deepening a price war ignited by Tesla’s first salvo in January.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

Xi’s Remarks on CATL ‘a Warning to Chinese EV Battery Makers’

BYD to Build $1.2 Billion EV Battery Plant in Zhengzhou

South Korea’s SK On to Produce Cheaper EV Battery by 2025

China’s CATL to Help Tap Into Bolivia’s Lithium Riches

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

Recent Posts

Floods, Droughts, Earthquake, Big Freeze Cost China $3.3bn

China’s emergency management ministry said the country had also been hit by a drought, sandstorms…

15 hours ago

China Slams ‘Biased’ EU Over Electric Vehicle Imports Probe

A Chinese industry body chief said Brussels’ investigation was ‘tainted’ and stacked against his country’s…

16 hours ago

US Lawmakers’ Fury Over Huawei’s Intel AI Chip-Powered Laptop

Republicans have hit out at the Biden administration over continuing supplies of high-end American tech…

17 hours ago

Huawei Signals New High-End Smartphone After Mate 60 Success

Speculation has been growing for months about Huawei’s P70 model which is expected to be…

2 days ago

China Proposes New Trading, Listing Rules to Revive Market

China's Securities Regulatory Commission says it will bolster its supervision of company listings, delistings and…

2 days ago

‘Ban Chinese Electric Vehicles From The US’: Senator

Lawmaker Sherrod Brown, who has also demanded steep tariffs on Chinese EVs, says they are…

2 days ago