The German-American physicist John Bannister Goodenough patented the technology that allowed to manufacture Iron and lithium phosphate batteries (known as LFP for its English denomination) in 1997. In 2019, when he was no less than 97 years, he was awarded the Nobel Prize for his contribution for his contribution to the development of lithium ion batteries. However, Goodenough made a mistake. An important mistake: he failed to transfer his innovation to the American industry, so its impact on the West was minimal.
Wang Chuanfu, the founder of the Chinese company Byd, did not make that mistake. In 2002 he perceived the potential of the technology that Goodenaugh had invented, so he asked his research and development team (R&D) to investigate the technology and capabilities of LFP batteries with the purpose of minimizing the dependence that China of the nickel and cobalt had. That decision I guide Byd towards the leadership position Shared with Catl currently occupied in the battery production industry. In fact, in 2008 he placed in the market The first car in the world Equipped with an LFP battery.
China manufactures 57% of the batteries used by electric cars
China is currently The largest electric vehicle market of the world. In 2025 in this country more electric cars will be sold for the first time than with combustion engine thanks to some extent to government subsidies. In addition, China is the largest electric car exporter on the planet. In 2023 he exported approximately 1.7 million electric vehicleswhich represents more than 30% of its total car exports.
However, its international expansion is being seriously conditioned by the tariffs that are imposing USA or the European Union, among other regions with very serious difficulties to compete with the Chinese electric car. Finally, as we have seen, China is also a world leader in The production of lithium batteries. If we stick to electric cars the country led by Xi Jinping Fabrica 57% of batteries that these vehicles use. CATL and ByD are the largest lithium batteries on the planet with a market share in 2024 of 37.9% and 17.2% respectively, according to the consultant Sne Research.
In 2017 for the first time the market share of NCM batteries surpassed that of LFP in electric cars
China has reached this leadership position due to several factors. On the one hand it is The largest producer in the world of lithium and rare earths, which are the main raw materials used in the manufacture of batteries. In addition, it controls the processing of these materials and is capable of producing large -scale batteries and with a very competitive price. However, in this recipe there is one more ingredient that we cannot overlook: byd and Catl lead the global battery industry thanks to their capacity for innovation and adaptation.
In 2017, Chinese government subsidies prioritized the development of Nickel batteries with greater energy density, so much of Chinese battery manufacturers opted for NCM technology. These lithium -ion batteries use a nickel (ni), cobalt (co) and manganese (mn) cathode, hence their name. And byd lagged. In fact, in 2017 for the first time the market share of NCM batteries surpassed that of LFP in electric cars. And in 2019 the NCM batteries already dominated the market.
But Byd did not give up. Wang Chuanfu was convinced that the really important security was, and, therefore, the thermal stability of the batteries, so it launched a new R&D project that concluded with The tuning of Blade batteries. These devices are thinner, have modular structure and can be easily integrated into the chassis of electric cars. This bet went well to Byd. At the end of 2020 this company and catl They controlled 66% of the Chinese market of the LFP batteries for electric cars against 6% that added in 2019. This is the authentic strength of the two Chinese companies that lead the world battery industry.
Image | Byd
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