Chinese electric car maker BYD reports 632% jump in profits … “Taking Tesla to the Wood Shed”


Electric car maker BYD is speeding ahead of Tesla with respect to profitability.

The Chinese company today (April 28) reported a 632% jump in profits in the first quarter from a year ago. Days earlier, the US car company led by Elon Musk announced one of its worst quarters ever.

BYD is the world’s largest electric vehicle maker (membership), though its brand isn’t widely recognized outside of China. It started out as a battery maker about 25 years ago and transitioned into the car business a little more than a decade ago, making both conventional fossil fuel-powered cars and “new energy vehicles.”

The success of its first mass-produced hybrid caught the attention of legendary US investor Warren Buffett, who in 2008 bought a 10% stake in BYD for $230 million. That investment seems to be really paying off right now.

There is increased demand for electric vehicles in China, BYD says, and it expects continued growth. The company’s profits rose to about 750 million yuan ($111 million) in the first quarter, compared to 102 million yuan a year ago. BYD sold 73,172 new energy vehicles (pdf) in the quarter, up 147% from the same period a year ago.  

Including conventional fuel cars, it sold 73,172 vehicles in the quarter, up 5% from last year. The company is now selling more electric vehiclesthan conventional cars.

“New energy vehicles are expected to continue to sell well in the second quarter, and new energy vehicle sales and revenues continue to maintain strong growth,” the company’s latest stock exchange filing reports.

According to Reuters, BYD expects to sell 655,000 cars in 2019, and will account for a substantial portion of the 1.6 million electric vehicle total that China’s Association of Automobile Manufacturers predicts will be sold this year.

In stark contrast to this positive news for BYD, its US rival Tesla lost nearly $700 million in the first quarter. It attributed over $120 million in losses to a higher return rate than expected after it raised prices for the Model S and Model X.

In its quarterly earnings call, Tesla chief financial officer Zachary Kirkhorn described the first quarter as “one of the most complicated… in the history of the company.”

Beyond its faltering quarterly profits, Tesla also had some bad news in China to contend with recently.

Last week, a video that circulated widely on Chinese social media showed a parked Tesla Model S abruptly caching fire in Shanghai, where the company plans to build its first overseas factory. Earlier in the month, a parked Tesla in the US also caught fire.

The two electric vehicle makers do have something in common, however. Tesla and BYD both plan to expand into each other’s markets. China is the world’s largest car market, and the US comes second.

Read More: BYD Sold Over 28,000 EVs In January — Will China See Over 50% Sales Growth Again This Year? — #CleanTechnica Report

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Genesis Nanotech – ICYMI – Our Top 3 Blog Posts (as picked by you) This Week


#1

MIT Review: Borophene (not graphene) is the new wonder material that’s got everyone excited

#2

China made an artificial star that’s 6 times (6X) as hot as our sun … And it could be the future of energy

 

#3

Graphene Coating Could Help Prevent Lithium Battery Fires

 

Read/ Watch More …

Genesis Nanotech – Watch a Presentation Video on Our Current Project

Nano Enabled Batteries and Super Capacitors

Tenka Energy, Inc. Building Ultra-Thin Energy Dense SuperCaps and NexGen Nano-Enabled Pouch & Cylindrical Batteries – Energy Storage Made Small and POWERFUL!

 

 

 

China made an artificial star that’s 6 times (6X) as hot as our sun … And it could be the future of energy


  • China built a fusion reactor that reaches temperatures of 100 million degrees Celsius — that’s six times as hot as the sun.

  • While it was a milestone for EAST, we’re still a long way from generating sustainableenergy on Earth.

Imagine if we could replace fossil fuels with our very own stars. And no, we’re not talking about solar power: We’re talking nuclear fusion. And recent research is helping us get there.

Meet the Experimental Advanced Superconducting Tokamak, or EAST. 

EAST is a fusion reactor based in Hefei, China. And it can now reach temperatures more than six times as hot as the sun. Let’s take a look at what’s happening inside. Fusion occurs when two lightweight atoms combine into a single, larger one, releasing energy in the process.

It sounds simple enough, but it’s not easy to pull off. Because those two atoms share a positive charge. And just like two opposing magnets, those positive atoms repel each other. 

Stars, like our sun, have a great way of overcoming this repulsion … their massive size, which creates a tremendous amount of pressure in their cores … So the atoms are forced closer together making them more likely to collide.

There’s just one problem: We don’t have the technology to recreate that kind of pressure on Earth. 

But luckily, there’s another way. You can also generate fusion with extreme temperatures. And that’s exactly what devices like EAST do. The higher the temperature, the faster the atoms move around and the more likely they are to collide. 

But it quickly becomes a balancing act. If the temperature is too hot, the atoms move too fastand zip passed each other. If it’s too cold, the atoms won’t move fast enough. So, the ideal temperature to generate fusion is around 100 million degrees Celsius. That’s more than 6 times as hot as our sun’s core. 

Only a few fusion experiments in the world have surpassed this milestone. And the latest one was EAST. It sustained nuclear fusion for about 10 seconds before shutting down. And while it was a breakthrough for EAST, it’s a long way from generating sustainable energy for the people of Earth. 

And that’s actually on purpose. EAST is a tiny reactor. At only a few meters across, it’s not meant to be a full-fledged power plant. It’s an experiment. And right now, its job is to help us design more effective fusion technology that could, one day, power entire cities. 

Like ITER, short for International Thermonuclear Experimental Reactor, it’s the world’s biggest fusion project to date. Thirty-five countries have poured billions of dollars into its construction. And it is designed to be the first fusion reactor to ever produce more fusion power than the power used to heat it up. 

You see, you need to pour a lot of energy into these machines to get them to work. This recent EAST test, for example, guzzled over 10 Megawatts of power. Enough to power 1,640 American homes for a year. And it didn’t yield even half that amount. Since the entire point of a power plant is to, well, produce power, it’s a pretty important issue to work out. 

But it’s worth the effort. Why? Well for one thing, fusion reactors would produce practically no radioactive waste compared to the kind of reaction we see in today’s nuclear fission power plants. But even better. Fusion reactors can run on seawater— a renewable, sustainable resource. 

For perspective, the amount of water just on the top inch of Lake Erie is enough to produce more power than all the fossil fuels left on the planet. And unlike other energy sources, it doesn’t need the sun to shine or the wind to blow. 

In a time of dwindling resources and worsening climate change, we could sure use it.

Tesla is reportedly in talks with China’s Lishen over Shanghai battery contract


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  • Tesla has signed a preliminary agreement with China’s Tianjin Lishen to supply batteries for its new Shanghai car factory, as it aims to cut its reliance on Japan’s Panasonic, two sources with direct knowledge of the matter said.
  • The companies had yet to reach a decision on how large an order the U.S. electric car company would place, and Lishen was still working out what battery cell size Tesla would require, one of the sources said.

 

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Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China, January 7, 2019.

Tesla has signed a preliminary agreement with China’s Tianjin Lishen to supply batteries for its new Shanghai car factory, as it aims to cut its reliance on Japan’s Panasonic, two sources with direct knowledge of the matter said.

The companies had yet to reach a decision on how large an order the U.S. electric car company would place, and Lishen was still working out what battery cell size Tesla would require, one of the sources said.

While Panasonic is currently Tesla’s exclusive battery cell supplier, Tesla Chief Executive Elon Musk said in November the U.S. company would manufacture all its battery modules and packs at the Shanghai factory and planned to diversify its sources.

“Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner,” Musk said in a tweet in November.

Other battery makers in the running for contracts could include Contemporary Amperex Technology and LG Chem.

Tesla broke ground on the $2 billion so-called Gigafactory, its first in China, earlier this month and plans to begin making Model 3 electric vehicles (EV) there by the end of the year.

Story from Reuters News Service

Chinese Company Unveils ‘World’s Cheapest Electric Car’ for Under $9,000


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Elon Musk’s Tesla Inc. arguably has one of the most affordable lines of electric vehicle, but that all could change as a Chinese company just unveiled what is now dubbed as the “World’s Cheapest Electric Car.”

Great Wall Motors, an automotive company based in Baoding, China, pulled the veil on its cheapest electric vehicle called the ORA R1, which is being marketed with a price of $8,680 according to the company, Express reported.

As a new market entrant, ORA R1 delivers an unprecedented experience to drivers,” general manager of the Ora line and vice president of Great Wall Motors, Ning Shuyong, said in a statement.

“ORA replaces the traditional sales, service, spare parts and surveys (4S) dealership-centered model that is common in China with a network consisting of ORA Home, experience centers and smart outlets in the central business districts of Chinese cities.”

“In addition, the big data cloud that is created as the result of the information collected from the ORA app, the ORA shopping site and the Tmall e-shop opens the way to the development of multiple scenarios for offline sales and services as well as new transportation services for both drivers and passengers.”

Waking up the vehicle is as easy as a simple greeting of “Hello, ORA” thanks to its artificial intelligence system, Mashable said. Its body is also said to be made out of 60% high-strength steel.

The car will come with a three-year or 120,000 kilometer (74,564 mile) guarantee for the entire vehicle while its components have an eight-year (93,205 miles) guarantee. So far Great Wall Motor is only selling the ORA R1 in China, but they’ve shown interest in bringing the cheapest electric car to other countries as well, Electrek reported.

Images screenshot via YouTube / MOTOTREND

The US and China are in a Quantum Arms Race that will Transform Future Warfare


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Radar that can spot stealth aircraft and other quantum innovations could give their militaries a strategic edge

In the 1970s, at the height of the Cold War, American military planners began to worry about the threat to US warplanes posed by new, radar-guided missile defenses in the USSR and other nations. In response, engineers at places like US defense giant Lockheed Martin’s famous “Skunk Works” stepped up work on stealth technology that could shield aircraft from the prying eyes of enemy radar.

The innovations that resulted include unusual shapes that deflect radar waves—like the US B-2 bomber’s “flying wing” design (above)—as well as carbon-based materials and novel paints. Stealth technology isn’t yet a Harry Potter–like invisibility cloak: even today’s most advanced warplanes still reflect some radar waves. But these signals are so small and faint they get lost in background noise, allowing the aircraft to pass unnoticed.

China and Russia have since gotten stealth aircraft of their own, but America’s are still better. They have given the US the advantage in launching surprise attacks in campaigns like the war in Iraq that began in 2003.

This advantage is now under threat. In November 2018, China Electronics Technology Group Corporation (CETC), China’s biggest defense electronics company, unveiled a prototype radar that it claims can detect stealth aircraft in flight. The radar uses some of the exotic phenomena of quantum physics to help reveal planes’ locations.

It’s just one of several quantum-inspired technologies that could change the face of warfare. As well as unstealthing aircraft, they could bolster the security of battlefield communications and affect the ability of submarines to navigate the oceans undetected. The pursuit of these technologies is triggering a new arms race between the US and China, which sees the emerging quantum era as a once-in-a-lifetime opportunity to gain the edge over its rival in military tech.

Stealth spotter

How quickly quantum advances will influence military power will depend on the work of researchers like Jonathan Baugh. A professor at the University of Waterloo in Canada, Baugh is working on a device that’s part of a bigger project to develop quantum radar. Its intended users: stations in the Arctic run by the North American Aerospace Defense Command, or NORAD, a joint US-Canadian organization.

Baugh’s machine generates pairs of photons that are “entangled”—a phenomenon that means the particles of light share a single quantum state. A change in one photon immediately influences the state of the other, even if they are separated by vast distances.

Quantum radar operates by taking one photon from every pair generated and firing it out in a microwave beam. The other photon from each pair is held back inside the radar system.

Equipment from a prototype quantum radar system made by China Electronics Technology Group Corporation IMAGINECHINA VIA AP IMAGES

Only a few of the photons sent out will be reflected back if they hit a stealth aircraft. A conventional radar wouldn’t be able to distinguish these returning photons from the mass of other incoming ones created by natural phenomena—or by radar-jamming devices. But a quantum radar can check for evidence that incoming photons are entangled with the ones held back. Any that are must have originated at the radar station. This enables it to detect even the faintest of return signals in a mass of background noise.

Baugh cautions that there are still big engineering challenges. These include developing highly reliable streams of entangled photons and building extremely sensitive detectors. It’s hard to know if CETC, which already claimed in 2016 that its radar could detect objects up to 100 kilometers (62 miles) away, has solved these challenges; it’s keeping the technical details of its prototype a secret.

Seth Lloyd, an MIT professor who developed the theory underpinning quantum radar, says that in the absence of hard evidence, he’s skeptical of the Chinese company’s claims. But, he adds, the potential of quantum radar isn’t in doubt. When a fully functioning device is finally deployed, it will mark the beginning of the end of the stealth era.

China’s ambitions

CETC’s work is part of a long-term effort by China to turn itself into a world leader in quantum technology. The country is providing generous funding for new quantum research centers at universities and building a national research center for quantum science that’s slated to open in 2020. It’s (China) already leaped ahead of the US in registering patents in quantum communications and cryptography.

A study of China’s quantum strategy published in September 2018 by the Center for a New American Security (CNAS), a US think tank, noted that the Chinese People’s Liberation Army (PLA) is recruiting quantum specialists, and that big defense companies like China Shipbuilding Industry Corporation (CSIC) are setting up joint quantum labs at universities. Working out exactly which projects have a military element to them is hard, though. “There’s a degree of opacity and ambiguity here, and some of that may be deliberate,” says Elsa Kania, a coauthor of the CNAS study.

China’s efforts are ramping up just as fears are growing that the US military is losing its competitive edge. A commission tasked by Congress to review the Trump administration’s defense strategy issued a report in November 2018 warning that the US margin of superiority “is profoundly diminished in key areas” and called for more investment in new battlefield technologies.

One of those technologies is likely to be quantum communication networks. Chinese researchers have already built a satellite that can send quantum-encrypted messages between distant locations, as well as a terrestrial network that stretches between Beijing and Shanghai. Both projects were developed by scientific researchers, but the know-how and infrastructure could easily be adapted for military use.

The networks rely on an approach known as quantum key distribution (QKD). Messages are encoded in the form of classical bits, and the cryptographic keys needed to decode them are sent as quantum bits, or qubits. These qubits are typically photons that can travel easily across fiber-optic networks or through the atmosphere. If an enemy tries to intercept and read the qubits, this immediately destroys their delicate quantum state, wiping out the information they carry and leaving a telltale sign of an intrusion.

QKD technology isn’t totally secure yet. Long ground networks require way stations  similar to the repeaters that boost signals along an ordinary data cable. At these stations, the keys are decoded into classical form before being re-encoded in a quantum form and sent to the next station. While the keys are in classical form, an enemy could hack in and copy them undetected.

To overcome this issue, a team of researchers at the US Army Research Laboratory in Adelphi, Maryland, is working on an approach called quantum teleportation. This involves using entanglement to transfer data between a qubit held by a sender and another held by a receiver, using what amounts to a kind of virtual, one-time-only quantum data cable. (There’s a more detailed description here.)

Michael Brodsky, one of the researchers, says he and his colleagues have been working on a number of technical challenges, including finding ways to ensure that the qubits’ delicate quantum state isn’t disrupted during transmission through fiber-optic networks. The technology is still confined to a lab, but the team says it’s now robust enough to be tested outside. “The racks can be put on trucks, and the trucks can be moved to the field,” explains Brodsky. china teleport 2014-10-22_quantum

It may not be long before China is testing its own quantum teleportation system. Researchers are already building the fiber-optic network for one that will stretch from the city of Zhuhai, near Macau, to some islands in Hong Kong.

Quantum compass

Researchers are also exploring using quantum approaches to deliver more accurate and foolproof navigation tools to the military. US aircraft and naval vessels already rely on precise atomic clocks to help keep track of where they are. But they also count on signals from the Global Positioning System (GPS), a network of satellites orbiting Earth. This poses a risk because an enemy could falsify, or “spoof,” GPS signals—or jam them altogether.

Lockheed Martin thinks American sailors could use a quantum compass based on microscopic synthetic diamonds with atomic flaws known as nitrogen-vacancy centers, or NV centers. These quantum defects in the diamond lattice can be harnessed to form an extremely accurate magnetometer. Shining a laser on diamonds with NV centers makes them emit light at an intensity that varies according to the surrounding magnetic field.

Ned Allen, Lockheed’s chief scientist, says the magnetometer is great at detecting magnetic anomalies—distinctive variations in Earth’s magnetic field caused by magnetic deposits or rock formations. There are already detailed maps of these anomalies made by satellite and terrestrial surveys. By comparing anomalies detected using the magnetometer against these maps, navigators can determine where they are. Because the magnetometer also indicates the orientation of magnetic fields, ships and submarines can use them to work out which direction they are heading.

China’s military is clearly worried about threats to its own version of GPS, known as BeiDou. Research into quantum navigation and sensing technology is under way at various institutes across the country, according to the CNAS report.

As well as being used for navigation, magnetometers can also detect and track the movement of large metallic objects, like submarines, by fluctuations they cause in local magnetic fields. Because they are very sensitive, the magnetometers are easily disrupted by background noise, so for now they are used for detection only at very short distances. But last year, the Chinese Academy of Sciences let slip that some Chinese researchers had found a way to compensate for this using quantum technology. That might mean the devices could be used in the future to spot submarines at much longer ranges.

A tight race

It’s still early days for militaries’ use of quantum technologies. There’s no guarantee they will work well at scale, or in conflict situations where absolute reliability is essential. But if they do succeed, quantum encryption and quantum radar could make a particularly big impact. Code-breaking and radar helped change the course of World War II. Quantum communications could make stealing secret messages much harder, or impossible. Quantum radar would render stealth planes as visible as ordinary ones. Both things would be game-changing.

It’s also too early to tell whether it will be China or the US that comes out on top in the quantum arms race—or whether it will lead to a Cold War–style stalemate. But the money China is pouring into quantum research is a sign of how determined it is to take the lead.

China has also managed to cultivate close working relationships between government research institutes, universities, and companies like CSIC and CETC. The US, by comparison, has only just passed legislation to create a national plan for coordinating public and private efforts. The delay in adopting such an approach has led to a lot of siloed projects and could slow the development of useful military applications. “We’re trying to get the research community to take more of a systems approach,” says Brodsky, the US army quantum expert.

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U.S. Leads World in Quantum Computing Patent Filings with IBM Leading the Charge

Still, the US military does have some distinct advantages over the PLA. The Department of Defense has been investing in quantum research for a very long time, as have US spy agencies. The knowledge generated helps explains why US companies lead in areas like the development of powerful quantum computers, which harness entangled qubits to generate immense amounts of processing power.

The American military can also tap into work being done by its allies and by a vibrant academic research community at home. Baugh’s radar research, for instance, is funded by the Canadian government, and the US is planning a joint research initiative with its closest military partners—Canada, the UK, Australia, and New Zealand—in areas like quantum navigation.

All this has given the US has a head start in the quantum arms race. But China’s impressive effort to turbocharge quantum research means the gap between them is closing fast.

Are Electric Vehicles at a Tipping Point? A Distinguished Panel Discussion Tackling the Tough Questions


Top EVs

Electric vehicles are set to overcome historic and significant hurdles: sticker price, range anxiety and limited model options. Annual sales are forecasted to jump from 1% today to 25% in 2030 and cross 50% by 2040.

Nearly every major car maker has announced new models for EVs. By 2020, there will be 44 models of EVs available in North America.

Watch the Video Discussion with Panelists from Daimler Benz, Chargepoint and Lucid

Please join us for a lively panel discussion with diverse electric vehicle experts as they provide their take on the future of the industry and tackle tough questions like:

  • What are the remaining technical, economic and political hurdles that will impact the mass adoption of EVs?
  • Charging infrastructure vs EVs – the chicken and the egg problem.
  • What’s the right amount and mix of charging infrastructure?
  • Connected, Autonomous, Shared and Electric – How important is “electric” to this futuristic concept?
  • When will EVs be cheaper to own than conventional internal combustion engine vehicles?
  • Battery costs have fallen 74% since 2010 – what other technology opportunities exist i.e. new battery chemistry, economies of scale?
  • China’s EV targets outpace Europe and the US. What are the implications for traditional automakers and Silicon Valley startups?
  • California’s latest Executive Order targets 5 million EVs on the road by 2030. How do we get there?all-ev-models-list-500

Panelists:

Sven Beiker – Moderator & Keynote Speaker, Stanford GSB

Pat Romano – CEO Chargepoint

Fred Kim – R&D Group Manager – Daimler Benz

Albert Liu – Director of Battery Technology, Lucid Motor

Presented By:

mit_logoMIT Club of Northern California

 

 

You might also enjoy watching a Presentation on ‘Mobility Disruption by Tony Seba:

Mobility Disruption | Tony Seba, Silicon Valley Entrepreneur and Lecturer at Stanford University

 

Watch Our Video Presentation – Tenka Energy, Inc.

“Tenka Energy, Inc. Building Ultra-Thin Energy Dense SuperCaps and NexGen Nano-Enabled Pouch & Cylindrical Batteries – Energy Storage Made Small and POWERFUL!”

Super Capacitor Assisted Silicon Nanowire and Graphene Batteries for EV and Small Form Factor Markets. A New Class of Battery /Energy Storage Materials is being developed to support the High Energy – High Capacity – High Performance and Cycle Battery Markets.

“Ultrathin Asymmetric Porous-Nickel Graphene-Based Supercapacitor with High Energy Density and Silicon Nanowire,” A New Generation Battery that is:

  •  Energy Dense
  •  High Specific Power
  •  Simple Manufacturing Process
  •  Low Manufacturing Cost
  •  Rapid Charge/ Re-Charge
  •  Flexible Form Factor
  •  Long Warranty Life
  •  Non-Toxic
  •  Highly Scalable

 

Key Markets & Commercial Applications

EV, (18650 & 21700); Drone and Marine Batteries

Wearable Electronics and The Internet of Things

Estimated $112B Market by 2025

Are Sustainable Super-capacitors from Wood (yes w-o-o-d) the Answer for the Future of Energy Storage? Researchers at UST China Think ‘Nano-Cellulose’ may Hold the Key


Supercapacitors are touted by many as the wave of the future when it comes to battery storage for everything from cell phones to electric cars.

Unlike batteries, supercapacitors can charge and discharge much more rapidly — a boon for impatient drivers who want to be able to charge their electric cars quickly.

The key to supercap performance is electrodes with a large surface area and high conductivity that are inexpensive to manufacture, according to Science Daily.

Carbon aerogels satisfy the first two requirements but have significant drawbacks. Some are made from phenolic precursors which are inexpensive but not environmentally friendly. Others are made from  graphene and carbon nanotube precursors but are costly to manufacture.

Researchers at the University of Science and Technology of China have discovered a new process that is low cost and sustainable using nanocellulose, the primary component of wood pulp that gives strength to the cell walls of trees.

Once extracted in the lab, it forms a stable, highly porous network which when oxidized forms a micro-porous hydrogel of highly oriented cellulose nano-fibrils of uniform width and length.

Like most scientific research, there was not a straight line between the initial discovery and the final process.

A lot of tweaking went on in the lab to get things to work just right. Eventually, it was found that heating the hydrogel in the presence of para-toluenesulfonic acid, an organic acid catalyst, lowered the decomposition temperature and yielded a “mechanically stable and porous three dimensional nano-fibrous network” featuring a “large specific surface area and high electrical conductivity,” the researchers say in a report published by the journal Angewandte Chemie International.

The chemists have been able to create a low cost, environmentally friendly wood-based carbon aerogel that works well as a binder-free electrode for supercapacitor applications with electro-chemical properties comparable to commercial electrodes currently in use.

Now the hard work of transitioning this discovery from the laboratory to commercial viability will begin. Contributed by Steve Hanley

Watch Tenka Energy’s YouTube Video

Tenka Energy, Inc. Building Ultra-Thin Energy Dense SuperCaps and NexGen Nano-Enabled Pouch & Cylindrical Batteries – Energy Storage Made Small and POWERFUL!

China’s Electric Vehicle Revolution: Video


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China’s electric car production grows three-fold in May

Beijing’s announcement that it is considering banning gasoline and diesel cars from its smog clogged roads promises to accelerate a push toward electric vehicles — a race in which Chinese car makers have everything to gain.

 

EV Batteries: A $240 Billion Industry In the Making that China is Taking the Lead


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Even those who consider themselves somewhat knowledgeable about the electric vehicle (EV) industry would be hard pressed to name more than a handful of EV battery suppliers.

Most would quickly name Japan’s Panasonic and South Korea’s Samsung and LG Chem, as well as reference the Gigafactoy that Panasonic and Tesla opened this past January in Nevada. A few of the more knowledgeable would also name BYD, a leading electric vehicle manufacturer in China that is also one of the world’s largest battery suppliers.

Other than those names, however, and perhaps one or two other lesser known players, the list would end there.

 

Nearly everyone would be surprised to learn that there are now more than 140 EV battery manufacturers in China, busily building capacity in order to claim a share of what will become a $240 billion global industry within the next 20 years. As in all things auto, EVs and the batteries that will power them promise to be big industries in China.

A $240 billion industry

The math is simple. Respected auto analysts like those at Bernstein, a Wall Street research and securities firm, are predicting that EVs will account for as much as 40% of global vehicle purchases in 20 years. Since almost 100 million vehicles are produced and sold globally, that means that the annual market for EVs will be 40 million, even if the total global vehicle build does not increase between now and then.

Assuming that battery prices reach parity with the $6,000 cost of an internal combustion engine, a $240 billion battery industry is now in the making. Due to its well-publicized problems combatting air pollution, China will lead the way in EVs, as well as in batteries.

Read more: Why China Is Leading The World’s Boom In Electric Vehicles

In order to meet projected demand, battery cell manufacturing capacity globally will need to increase dramatically, which is why China’s battery makers are aggressively expanding. When Tesla and Panasonic announced in 2014 their plans to build a “Gigafactory” capable of producing 35 Gigawatt hours (GWh) of battery cells every year, that was big news. (A GWh is equal to one million kilowatt hours.) After all, the entire battery capacity in the world at the time was less than 50 GWh.

A great deal has changed over the last three years, though. Led by China, battery cell manufacturing capacity has more than doubled to 125 GWh, and is projected to double again to over 250 GWh by 2020. Even that will not be nearly enough. Total cell production capacity will need to increase tenfold from 2020 to 2037, the equivalent of adding 60 new Gigafactories, during that period.

 

Shifting towards China

Battery technology originated in Japan; was then further developed by companies in Korea; and is now shifting strongly toward China. China’s cell production already has a larger share of global production than Japan’s, and China’s global market share is projected to rise to more than 70% by 2020.

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This photo taken on May 22, 2017 shows a car passing new electric vehicles parked in a parking lot under a viaduct in Wuhan, central China’s Hubei province. (STR/AFP/Getty Images)

Rapid market growth for EVs in China, as well as the tendency for Chinese auto assemblers to use homegrown products, augurs well for China’s continued leadership in battery cell manufacturing. According to Roland Berger’s E-mobility Index Q2 2017 report, locally made lithium-ion cells are used in more than 90% of the EVs produced by Chinese manufacturers.

Read more: The Electric Car Market Has A ‘Chicken Or Egg’ Problem — And China Is Solving It

With so many Chinese companies hoping to enter the battery sweepstakes, China’s government is considering policies that will set minimum production capacities for battery manufacturers as a way to further strengthen its position as a global leader. Although not yet official, Beijing would like Chinese manufacturers to have a production volume of at least 3 to 5 GWh per year. Separately, Beijing released draft guidelines at the end of 2016 stipulating that battery manufacturers would need to have at least 8 GWh of production capacity in order to qualify for subsidies. As a signal to the market, the government is planning to back the development of only those battery companies with annual production capacities of 40 GWh or more.img_0160

Who the government is championing

While Panasonic is the world’s largest supplier of electric vehicle batteries globally, Chinese companies are catching up.

Based in Shenzhen, BYD — which stands for “Build Your Dream” — is a Hong Kong listed, Chinese car company that in 2016 produced almost 500,000 cars and buses, approximately 100,000 of which were EVs or plug-in hybrids. Consistent with BYD’s strategy of vertical integration, it also has 20 GWh of battery cell capacity and is China’s largest battery maker.

In 2008, a subsidiary of Warren Buffet’s Berkshire Hathaway invested $230 million in BYD, which at the time represented a 10% stake in the company. BYD is now valued in the marketplace at $16.9 billion.

Read more: China And The U.S. Supercharge The Growing Global Electric Vehicle Industry

CATL is another leading Chinese battery company. Founded in 2011 and headquartered in Ningde, Fujian province, CATL focuses on the production of lithium-ion batteries and the development of energy storage systems. With manufacturing bases in Qinghai, Jiangsu, and Guangdong provinces, CATL has 7.7 GWh of battery capacity and plans to have battery production capacity of 50 GWh by 2020. Like BYD, CATL is the type of company that the Chinese government wants to support and promote as a national champion.

Companies to watch

Other companies to watch are Tianjin based Lishen Battery and Hangzhou’s Wanxiang Group.

BYD 3960x0

State Grid Corp. of China (SGCC) battery packs sit on display in the showroom of Wanxiang Group Corp. in Hangzhou, China in September 2016. (Photographer: Qilai Shen/Bloomberg)

Lishen has production bases in Bejing, Qingdao, Suzhou, Wuhan, Ningbo, Shenzhen and Mianyang, and plans to have 20 GWh of battery cell capacity by 2020. And Wanxiang is one of China’s largest private companies and one of the country’s leading automotive components suppliers. In 1994, Wanxiang established a U.S. company in Elgin, Illinois. Since then, Wanxiang has made over two dozen acquisitions in the United States, including A123, a battery maker that had gone into bankruptcy, in 2013, and Fisker Automotive in 2014.

The flip side to the coming Electric Revolution, of course, is that for every battery pack that is put into a vehicle, one less internal combustion engine is needed. While the growth of EVs will give rise to a large global battery industry, it will also make obsolete the substantial investments that have been made in global engine and engine component capacity.

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Tenka Power Max SuperCap Battery Pack for 18650 and 21700 Markets

Super Capacitor Assisted Silicon (and graphene) Nanowire Batteries for EV and Small Form Factor Markets. A New Class of Battery /Energy Storage Materials is being developed to support the High Energy – High Capacity – High Performance High Cycle Battery Markets.

“Ultrathin Asymmetric Porous-Nickel Graphene-Based
Supercapacitor with High Energy Density and Silicon Nanowire,”

A New Generation Battery that is:

 Energy Dense
 High Specific Power
 Simple Manfacturing Process
 Low Manufacturing Cost
 Rapid Charge/ Re-Charge
 Flexible Form Factor
 Long Warranty Life
 Non-Toxic
 Highly Scalable

Key Markets & Commercial Applications

 EV, (18650 & 21700); Drone and Marine Batteries
 Wearable Electronics and The Internet of Things
Estimated $240B Market by 2037