When it comes to new energy vehicle batteries, they are by no means simpler than car engines. Different materials and technologies exist, and even using the same materials but varying proportions can impact the overall performance of the vehicle. Currently, the battery market is experiencing unprecedented competition. With reduced subsidies for new energy vehicles and consumers demanding longer driving ranges, automakers are requiring smaller, more efficient batteries at lower prices. Therefore, this year has been a year of reshuffling for new energy vehicle battery manufacturers, with many going bankrupt and creating leading companies like CATL, BYD, and Guoxuan. For consumers, understanding new energy vehicles naturally begins with understanding batteries.
The technology war is reshaping battery companies.
In the second half of 2018, various emerging new energy vehicle manufacturers entered their "harvest season," with NIO and WM Motor beginning deliveries to customers. Behind this fierce competition in the blue ocean market was an even more intense competition in the battery market. Lang Chuan, a research and development staff member at the Qingdao factory of a well-known brand in the industry, told reporters that the introduction of new energy subsidies a few years ago stimulated the rapid growth of the battery industry. "You could buy individual battery cells from outside, make them into battery packs according to the requirements of new energy vehicle manufacturers, and sell them for a good price. Research and development was completely ignored," Lang Chuan described the early new energy battery market to reporters. However, this model is now difficult to sustain. "The reduction in subsidies means that manufacturers must reduce costs, and batteries account for 30%-40% of the cost of new energy vehicles. Cost reduction must start with batteries. The driving range of new energy vehicles has now entered the 500-kilometer era. Increasing energy density without changing the volume is a technology that not all manufacturers can achieve."
On one hand, there's the pressure of cost; on the other, there's the pressure of R&D capabilities. This dual pressure has plunged many new energy battery companies into difficulties, while simultaneously creating a group of "powerful players." Brands like CATL, BYD, and Guoxuan are gradually gaining market recognition. "When introducing our cars to consumers, we always emphasize the use of CATL batteries," Chen Min frankly stated. He added that consumers now not only have an understanding of car brands but also a reputation for quality batteries. In his view, "This is actually recognition of a healthy market that emphasizes R&D, technology, and quality, which is a good thing for the new energy vehicle market."
Competition over product types: Lithium batteries gradually dominate the market.
"Currently, lithium-ion power batteries remain the mainstream in the market." As a technician, Lang Chuan favors lithium batteries, believing that the lithium battery era has fully arrived. Based on the different cathode materials, lithium-ion batteries are mainly divided into lithium iron phosphate batteries and ternary batteries represented by nickel-cobalt-manganese and nickel-cobalt-aluminum batteries. However, the energy density of the relatively mature lithium iron phosphate batteries has already reached its physical limit.
Consumers' expectations for the driving range of electric vehicles have been transmitted to power battery companies through automakers, inevitably demanding higher battery energy density, larger capacity, and longer range. Moreover, the "Action Plan for Promoting the Development of the Automotive Power Battery Industry," issued as early as February 2017, clearly stated the goal of achieving a single-cell energy density of 300Wh/kg and a system energy density of 260Wh/kg, with a cost of 1 yuan/Wh by 2020. Achieving this goal solely with lithium iron phosphate batteries is virtually impossible. Therefore, the proportion of ternary lithium batteries is rapidly increasing, while the growth rate of lithium iron phosphate batteries is slowing down. Lang Chuan believes that "in the next few years, power batteries will mainly consist of ternary lithium batteries, while simultaneously developing towards high-nickel ternary and new battery systems." Automakers have already taken action; even BYD, which initially leaned more towards lithium iron phosphate battery research, has recently quietly changed its direction, not only widely equipping its new cars with ternary lithium batteries but also shifting its R&D towards ternary lithium batteries.
However, high-performance ternary lithium batteries are scarce in the market, and many new energy vehicle manufacturers are unable to deliver vehicles on a large scale, with battery shortages being a major reason. In addition, many brands' long-range models are also frequently out of stock, which is also closely related to insufficient production capacity of high-performance ternary lithium batteries. Lang Chuan told reporters that the surge in ternary lithium battery production has led to continuously rising prices of raw materials such as manganese and cobalt. In the future, developing alternative products to reduce costs will become the focus of battery R&D companies. Looking at the international market, domestic and foreign companies have accelerated their deployment of next-generation battery technologies, such as all-solid-state lithium batteries, lithium-sulfur batteries, and fuel cells.
Battery Family Map
Nickel-metal hydride, ternary lithium, lithium cobalt oxide... Find battery "chemistry lessons" boring? This reporter is giving you a "Pleasant Goat" battery family chart to help you quickly understand their "personalities".
Nickel-metal hydride batteries
Advantages: Low price, highly versatile, high current output, environmentally friendly and stable.
Disadvantages: Heavy weight, short battery life.
"Personality" traits: Nickel-metal hydride batteries are somewhat similar to Lazy Sheep in the animated series "Pleasant Goat and Big Big Wolf". They are not very strong but not picky eaters, and sometimes they like to "hold grudges".
Early mobile phone batteries were nickel-metal hydride (NiMH) batteries, which had small capacity, short lifespan, and a "memory effect," leading many to dislike them. However, since the 1990s, many hybrid vehicles, such as the Toyota Prius, have adopted NiMH batteries as energy storage components. While NiMH batteries have low individual cell voltages, they are inexpensive, environmentally friendly, and stable, making them ideal for supplementing gasoline engines in hybrid vehicles.
Lithium cobalt oxide batteries
Advantages: High energy density and stable structure.
Disadvantages: Poor security and very high cost.
Personality traits: Lithium cobalt oxide batteries are more like Boiling Sheep, with super strength, but a slightly irritable temper.
Lithium cobalt oxide batteries are a type of lithium-ion battery. They are structurally stable, have a high capacity density, and excellent overall performance, but they suffer from poor safety and very high cost. They are mainly used in mobile phones, laptops, and other portable electronic devices. Tesla's first-generation Roadster was the only electric vehicle to use lithium cobalt oxide batteries. While the high energy density of lithium cobalt oxide batteries is an advantage, their internal chemical composition becomes unstable between 180-250℃, making them unpredictable. Tesla's initial choice of lithium cobalt oxide batteries was due to its powerful battery management and monitoring system, which ensures that each battery operates at a suitable temperature.
Lithium iron phosphate batteries
Advantages: Ultra-stable, low cost, and long cycle life.
Disadvantages: Low energy density and poor low-temperature performance.
"Personality" traits: The warm-hearted sheep of the battery world, big in size but weak in strength, and most importantly, with an extremely good temper, practically a Buddhist good youth.
Lithium iron phosphate (LFP) batteries are lithium-ion batteries that use lithium iron phosphate as the positive electrode material. Also known as lithium iron batteries, BYD was once the primary developer of this type of battery. The most prominent feature of LFP batteries is their thermal stability, which is currently unparalleled among automotive lithium batteries. However, the energy density of LFP batteries is far lower than that of ternary lithium batteries. To achieve a longer driving range, the size must be increased. Therefore, LFP batteries are currently more commonly used as power batteries in large vehicles such as electric buses.
ternary lithium battery
Advantages: High voltage platform and high energy density.
Disadvantages: Poor safety and poor high-temperature resistance.
"Personality" characteristics: Ternary lithium batteries can be described as the "Pleasant Goat" of the battery world. They are not the best in all aspects, but they are well-balanced. They are also prone to anger and are afraid of heat.
Ternary lithium batteries are currently the most popular battery type for electric vehicles. From Zhidou to Tesla, even BYD has begun to switch to ternary lithium batteries. The term "ternary" refers to the use of nickel, cobalt, and manganese in the positive electrode, along with lithium. Ternary lithium batteries have a much higher energy density, meaning that a ternary lithium battery of the same weight has a longer driving range than a lithium iron phosphate battery. Although ternary lithium batteries are safer than lithium cobalt oxide batteries, their internal chemical components begin to decompose when the temperature reaches 250-350℃, thus placing extremely high demands on the battery management system.
hydrogen fuel cells
Advantages: Convenient and simple energy refilling, higher efficiency, clean and pollution-free.
Disadvantages: complex technology, high cost, and short lifespan.
"Personality" traits: The Pleasant Goat of the battery world, beautiful and elegant, but a bit out of touch with reality.
Hydrogen fuel cells are batteries that use hydrogen, a chemical element, to store energy. Strictly speaking, they are not batteries, but rather generate electricity through the chemical reaction of hydrogen and oxygen. The entire process only produces water and heat, making them more environmentally friendly. Another advantage of fuel cells is their thermal efficiency. Gasoline internal combustion engines have a thermal efficiency of only around 30%, while hydrogen fuel cells can achieve a power generation efficiency of over 50%. Hydrogen fuel cells are expensive to manufacture, and they use platinum as a catalyst during power generation—yes, platinum. Although the industry generally believes that hydrogen fuel cells are the future trend for electric vehicles, they currently still seem very promising.
