Unveiling the Second Generation Blade Battery.
BYD poses a significant challenge to Tesla. Although these two companies are built on contrasting philosophies, their ultimate objective is identical – to be the dominant player in the electric vehicle (EV) industry and replace gasoline-powered automobiles. While Tesla may appear to be the front runner in the United States, BYD is outpacing them in worldwide sales. This can be attributed to BYD’s economical pricing, despite offering similar, if not superior, specifications to Tesla. Astonishingly, BYD maintains a higher profit margin than Tesla while selling these affordably priced EVs. The secret to this success? Their groundbreaking proprietary power source, the Blade Battery, which offers superior cost-efficiency compared to any other available option. So impressive is the battery that it’s been sold and licensed to nearly all established EV makers including GM, Hyundai/Kia, Toyota, Mercedes-Benz, BorgWarner, and even Tesla! Intriguingly, Tesla prefers to source its competitor’s battery over its own so-called ‘innovative’ 4680 cells. This could be seen as a troubling indication. And it’s only set to escalate, with BYD readying the second generation of the Blade Battery for release.
Let’s begin with the fundamentals. What is the BYD Blade Battery and why does it stand out in the crowd? Essentially, the Blade Battery concept aims to produce less expensive LFP batteries of comparable quality to currently utilized lithium-ion batteries, thereby satisfying the EV industry’s demand for a high-performance, affordable battery.
Although LFP cells are markedly cheaper per kWh than lithium-ion cells, they also significantly lack in energy density and require a longer charging period. Consequently, the challenge for BYD was to elevate the energy density and enhance charging speeds of these cells, without escalating the overall expenses. They achieved this through the ingenious creation of large, prismatic blade-like cells arranged in rows – which inspired the battery’s name. The structure of a single cell in the Blade Battery is equivalent to a whole row of cylindrical cells in other packs. This not only trims down the manufacturing costs due to fewer components needed for assembly but also results in a lighter, smaller pack that is 50% more space efficient than those using cylindrical cells. In terms of accelerating charging speeds, BYD employed an 800-volt architecture, which is twice as much as what Tesla deploys. As charging speed is delimited by the battery’s current, and higher voltage equates to reduced current for identical electrical power, the adoption of this approach significantly cuts down the charging time of the Blade Battery, giving it an edge over other LFP packs.
The initial BYD Blade Battery boasted a remarkable, streamlined design that enabled it to power up from 10% to 80% in just half an hour. It could achieve an energy density of 150 Wh/kg and had a lifespan extending to over 3,000 charging cycles. Furthermore, it offered an exceedingly economical cost per kWh, under $85, and in several cases, even down to $55.40 per kWh! To put that into perspective, the LFP pack, sourced from CATL for the standard Tesla Model 3, could also energize from 10% to 80% in slightly less than half an hour, yet it had an energy density of 125 Wh/kg. It was only capable of a charging cycle lifespan of 2,000 charges and came at a cost of $100 per kWh. Consequently, BYD’s superior batteries are a sound choice for Tesla, potentially leading to savings of over $1,000 per electric vehicle. Additionally, the lesser weight of the batteries could extend the driving range of their vehicles per charge.
Recently, BYD revealed plans to introduce the next iteration of the Blade Battery, which is set to hit the market as soon as August! The updated model will retail for the same price as its predecessor, while offering identical durability and charging time. However, what sets it apart is a considerable reduction in weight and overall size. This has been achieved by amplifying the energy density of the cells to approximately 220 Wh/kg, resulting in the whole pack having an energy density of 190 Wh/kg. This remarkable feat positions it as the globally leading energy-dense LFP battery pack.
The advanced energy density of the Gen 2 Blade Battery will enhance the range capabilities of electric vehicles (EVs) utilizing it, thanks to improved energy efficiency during acceleration. This is due to a weight reduction of about 75–100 kg compared to the Gen 1 battery pack. Simultaneously, EVs can also select a larger Gen 2 battery pack with a weight equivalent to the previous Gen 1 pack. BYD has projected that such vehicles can achieve an impressive range of about 1,000 km or 621 miles on the CLTC cycle, which equates to approximately 520 miles on the WLTP cycle. Even more attractive is that this larger Gen 2 battery pack will only cost about $1,000 more than the previous Gen 1 pack!
Despite appearing incremental in nature, this enhancement could have an extraordinarily broad influence. Consider the Seal, BYD’s Blade Battery-operated competitor to the Model 3. The latest version 2 battery will enable its long-distance model to retain a slightly lower price than the Model 3 Long Range while outperforming it with over 500 miles of WLTP range versus the Model 3’s 391-mile range. It’s essential to note that BYD isn’t the sole consumer of this battery pack; it’s accessible to nearly every significant electric vehicle player. Notably, BorgWarner, a provider of automotive parts, has secured the license to manufacture the Blade Battery in their US factories, bypassing any import tariffs impeding this technology’s introduction to the US market. Therefore, this enhancement does not only foster BYD’s reputation as the premier source of cost-effective high-performance batteries but could also jeopardize Tesla’s growth strategy and the viability of its 4680 battery.
