BYD Opens What It Claims Will Be World’s Largest Battery Factory

JUL 1 2018 BY MARK KANE 44

BYD just opened its third lithium-ion battery factory in China, which by 2020 will be world’s largest battery plant.

BYD batteries

The new facility in lithium-rich Western China’s Qinghai province is ready to produce 24 GWh and step-by-step will be expanded to reach 60 GWh annually in 2020. The investment apparently already exceeds 10 billion yuan ($1.5 billion).

According to BYD, the factory in Qinghai will be largest in the world after its construction is completed in 2019 (equivalent to the size of 140 football fields).

The two other factories are located in Shenzhen and Huizhou. Company is also considering to build factory in Europe. On the other hand in the future battery arm of BYD is expected to spin-off.

Sherry Li, BYD’s marketing head, said – according to Bloomberg – that next year BYD will begin volume production of more energy-dense NMC 811 batteries.

“BYD’s new Qinghai factory is technologically advanced, employing the use of a first rate Manufacturing Execution System, smart logistics, driverless automatic guided vehicles and a seamless information integration.”

“With more than 23 years’ continuous innovation, the company offers a wide variety of battery products, such as consumer 3C batteries, power batteries, solar cells and energy storage batteries, and has a complete battery ecosystem. In addition to applications in new energy vehicles and rail transportation, BYD’s battery products are widely used in solar power stations, energy storage power stations and many other new energy solutions.

BYD is present in more than 200 cities in 50 countries and regions and was the number one seller of new energy vehicles in the world between 2015 and 2017.”

BYD’s battery factory in Western China’s Qinghai province

BYD batteries

BYD President and Chairman Wang Chuanfu said:

“Electrification is a done deal as several countries have announced a deadline for the sale of internal combustion engine cars to end. Electric vehicles are on the cusp of another boom.”

BYD battery division CEO He Long said:

“All our batteries come with a unique identification code. We can troubleshoot any problems simply by scanning the QR code on the battery as this gives us the battery’s technical specifications and necessary manufacturing information.”

Source: BYD, Bloomberg

Categories: Battery Tech, BYD, China

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44 Comments on "BYD Opens What It Claims Will Be World’s Largest Battery Factory"

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Excellent; it is all coming together!

BYD may quite easily become the world leader in “in-house” low price and high volume EV battery production.

Hmmm. Why aren’t the shorts shorting BYD?
Remember those Warren Buffett VERSES Elon Musk Articles?
Embarrassing now that it’s WarrenBuffet AND Elon Musk building Gigafactories.

Again, the short position is poison, this is extremely dangerous to be shorting Tesla right now.
GM and FORD, those are companies that you should be shorting.
Because neither one of them has a Hybrid, Plugin or EV with more than 30,000 potential build capability. In other words compared to Tesla they have virtually Zero Production in leading edge vehicles.

They are making money and not valued a thousand times what an optimistic financial result for next year would be?

It will be the biggest battery factory until Elon releases Ludicrous Mode for the Gigafactory!

One difference, BYD fulfills their commitments, and Elon after 4 years of construction has only built 30% of Gigafactory 1…. and construction is currently stopped.

There’s a difference between not fulfilling commitments and fulfilling commitments within a prescribed time period. I’m not sure what your point is, but good job creating a negative spin on my merely light-hearted comment.

I was just merely stating facts…. GF1 started in 2014, 30% complete, and not proceeding at the moment… FACTS… BYD said they would open the factory in 2018, and complete it in 2019, they are right on guidance, more facts…

Uuuhm, I’m missing a detail: where did Tesla say when the Gigafactory would be complete?

Tesla stated that the Gigafactory will be producing 35 GWh/year by 2020. They’re now at a rate of roughly 350 k vehicles per year x 70 kWh = 25 GWh/year excluding Tesla Energy products. Pretty much on track if you ask me.

“I was just merely stating facts” yea right.

Where is the evidence of that production level, Panasonic said they had been short of the 5K per week in cells just last week? Did I miss something?

Let’s be precise. Here is the quote from Panasonic: “A pickup in production of Tesla Inc’s Model 3 cars, after earlier delays, has resulted in occasional battery cell shortages, a Panasonic Corp official said on Thursday in a sign Tesla is in overdrive to meet its end-June forecast.”

“occasional”, not “structural”

There is little doubt Tesla will surpass its 35 GWh/yr by 2020 target.

Now at a rate of 350k per year??

Tesla managed 8,300 Model 3 in June. That included a desperate sprint week the likes of which won’t happen in July.

What do you expect they’ll make in Q4? 25,000 per week? Ridiculous.

David Green continued his serial Tesla bashing campaign:

“I was just merely stating facts….”

🙄
This is a use of the word “facts” with which I am not familiar.

Dispute the facts… Big guy… I am waiting! Elon said GF1 would be finished in 2018 originally, then bumped it back to 2020 at the opening, and then in the shareholder meeting this year he said “about 4 years” Sounds like a moving target…

With that kind of reasoning you can promise whatever and never held accountable.

He wasn’t promising anything. He made a positive comment on the article. Perhaps you might consider doing the same?

When a promise includes a timeline it’s part of the promise. Failing to keep to the timeline is to fail to keep the promise.

Like I stated in another reply: by lack of substance, you make up your own ‘targets’ for Tesla to miss.

So says that “patriotic” American Dave “Green” who is invested into BYD and short on Tesla.

I am not short on anything, but Long on BYD, for sure.

Tesla is a fine company that makes fine products. But could we stop with the circle jerking? People want to read about other things as well. This kind of cult mentality has turned me into not being a Tesla fan.

You should stop listening to the “cultists” then and go try their products for yourself. You have to seek out circle jerks, instead seek out the cars, drive one, and then figure it out for yourself. You should never base fan-ship of any product based on discussion forums.

By claiming “biggest”, BYD has actually brought this sort of reaction on themselves…

Appears to be largest in size not largest in output. This means it’s not very efficient.

I guess space is not a limiting nor expensive factor at that location. If they can produce with a high labor and energy efficiency I wouldn’t care too much about a low space efficiency which in turn could decrease problems when it comes to maintenance and expansion of the production lines.

As long as they push down price per KWh they are more than welcome to do.

Those are great news and a little bit of factory space wasted or as a reserve for expansion really isn’t too bad IMO.

It may mean they’re more vertically integrated.

GF original plan was 35GWh from raw materials to finished packs. Current plan is 105 GWh starting from processed powders instead of raw materials.

BYD makes everything themselves, Tesla only assembles packs, Panasonic makes the cells and the profit.

Tesla has a partnership with Panasonic. It’s a win-win for both Tesla and Panasonic; they are sharing the expenses and risks of building Gigafactory 1.

Trying to spin that as a negative thing isn’t merely FUD on your part, it’s pretty desperate. Just why are you here, again? Clearly it’s not due to any interest in EVs.

Panasonic = earnings, Tesla = loses… Just the facts…

No FUD, just facts… please use your effort to dispute the facts, use your google-fu so you can pretend to actually know something.

What legal entity makes the cells at the Gigafactory is entirely unrelated to the discussion at hand, which is about what parts of the manufacturing process happen at the Gigafactory.

That’s interesting. Where did you hear about plans changing from raw materials to processed powders?

How many more new battery factories will BYD start during the next decade?

At least 4?

Probable 4 more then Tesla… Tesla will still be working to complete GF1

“Working to complete”….

GF1 was planned 5 years ago or so, thinking they’d need X sq meters to produce 35 GWh/yr. Now they’re at roughly 75% of that with 30% of the building complete. mmm, seems like they’re more efficient than planned (Elon said so on a few occasions). Why do you try to spin that into a negative?

Tesla is not in the real estate business. The goal is not to have a building of a given size. The goal is to produce batteries and have a building just the right size to achieve that.

A decade is a very long horizon… If they want to keep market share, they surely will need many more (or much bigger) than that within a decade.

We will be reading more news about new battery factories around the world during every year of the next decade. The investments in new battery factories are going to increase as well. If money is to be made, capital will be glad to join the party.

Glad to see BYD commit to building more batteries for EVs.

Also amusing, if inevitable, that comments here would immediately turn to describing this as if there is a competition between BYD and Tesla to build the world’s “largest” (whatever that means) or highest-capacity battery cell factory. This isn’t a zero-sum game. Both BYD and Tesla can, and likely will, win in market competition against gasmobiles.

Go BYD!

Tesla bashers vs Tesla Fanboys… Fight…

Also amusing is the CATL might beat them both in capacity by 2020…
But I am rooting for all of them to grow…

Go BYD!
Go Tesla!
Go CATL!

Go xyz…

Personally I am happily looking forward to falling battery prices, which will impact a variety of transportation and renewable energy sectors as well as a wide range of small, medium and large size power tools and other mobile devices.

Future is bright!

CATL sure has ambitious plans — but they will need to get even more ambitious in order to “beat” Tesla and BYD by 2020…

Batteries are not a zero sum game, there is no winner or loser, well actually the loser is the company that does not get in the game.

If BYD spins off its battery operation, what happens to byddy stock?

Usually shareholders get an equal percentage of the spun off company. But since BYD is a battery company and the CEO Wang Chuanfu is a leading chemist in the field, I would say the cars are what they would spin off.