BYD's Small Energy Density Target

Recently, the Shenzhen Stock Exchange sent a letter of inquiry to BYD, requesting it to explain the financial problems, operation and R&D situation in the 2017 annual report. In the inquiry letter, BYD was asked to explain whether the product structure of power battery in BYD could adapt to the development trend of the industry by combining the research and development of lithium iron phosphate batteries and ternary batteries in BYD.

In response, BYD made it clear in its reply announcement to Shenzhen Stock Exchange on May 8 that the company's product structure in power batteries is adapted to the development trend of the industry.

BYD said that the company has a full and comprehensive technical accumulation in the field of power batteries, and currently has leading lithium iron phosphate and ternary battery technology. In the two major technical areas, the company's core technical indicators are in the industry leading level.

As for lithium iron phosphate, the energy density of the battery is 165 wh/kg and the inclusion is 140 wh/kg. According to the current state subsidy policy, the maximum subsidy standard can be 1.1 times. In the next two years, the planned energy density of monomer will be increased to more than 180 wh/kg and inclusion to 160wh/kg.

For ternary batteries, the current energy density of single cell is 200 wh/kg and the inclusion is 160wh/kg. According to the current state subsidy policy, the maximum subsidy standard can be obtained by 1.1 times. In the next two years, the planned energy density of monomer will be increased to more than 260 wh/kg and inclusion to 200 wh/kg.

In terms of capacity, the company has sufficient capacity reserve in the field of lithium iron phosphate batteries and ternary batteries, with a total capacity of about 16 GWh by the end of 2017. In terms of capacity distribution, because the company's power battery production line is flexible configuration, the product production structure can be adjusted according to the market demand for lithium iron phosphate and ternary batteries to meet the different needs of the future market.

Due to the different performance characteristics and application scenarios of lithium iron phosphate batteries and ternary batteries, the company will adhere to two major technical routes at the same time. Among them, lithium iron phosphate batteries have the advantages of high safety and long cycle life, which can meet the needs of commercial vehicles with higher safety requirements and higher operating frequency, while in passenger vehicles with higher requirements for space and weight, high energy is required. Density of ternary batteries can achieve a longer range, more in line with the needs of individual consumers.

In addition, BYD also mentioned in the reply announcement that in order to meet the technical requirements of the new energy vehicle subsidy standard in 2018, it actively plans and develops new energy vehicle products that meet the technical requirements of the subsidy technology threshold, especially in terms of energy density of power battery system and vehicle energy consumption requirements, in order to meet the technical requirements of higher subsidy multiples. For example, in terms of energy density of power battery system, the company will allocate pure electric buses with energy density of 135Wh/kg or more to get new energy vehicle subsidy with adjustment coefficient of 1.1 times. In the field of pure electric passenger vehicles, new energy vehicle subsidy with energy density of more than 140 wh/kg has also been introduced, and new energy vehicle subsidy with adjustment coefficient of 1.1 times will also be obtained. It is anticipated that after the implementation of the new subsidy standard on June 11, the subsidies for pure electric passenger vehicles with high endurance mileage, high energy density and low energy consumption will be greatly increased.

The page contains the contents of the machine translation.