BYD to Supply Li-ion Batteries to a Major Chinese Automaker
17 August 2009
Gasgoo. BYD, the China-based battery and automaker, will supply lithium-ion batteries to one of China’s top three auto groups for applications in hybrid vehicles. The agreement markets BYD’s first Li-ion supply deal with a domestic China OEM.
BYD sales manager Wang Jianjun confirmed that BYD did sign contract with one of China’s major automakers but he could not tell its name because of professional secrecy.
| BYD: “A real threat” |
|---|
| In an interview with GCC at the Plug-in 2009 conference last week, Mike Tinskey, global manager of Ford’s sustainability activities focused on electric vehicles, said that Ford is concerned about BYD. |
| “[They] could take advantage of low-cost. They are a real threat...a global threat.” |
BYD, launched its production plug-in hybrid F3DM last December in China. In January 2009, it brought the F3DM, the F6DM (a larger version of the F3DM), and an all-new battery-electric crossover, the e6, to the North American International Auto Show in Detroit. (Earlier post.)
In May, BYD and Volkswagen signed a memorandum of understanding to explore the options for partnership in the area of hybrids and electric vehicles powered by lithium batteries. (Earlier post.)
BYD, around 10%-owned by Warren Buffett’ss Berkshire Hathaway, sold 170,000 vehicles in 2008 and is targeting sales of 400,000 units this year and 700,000 in 2010.
For the first time in history, China will be the number one car manufacturer and buyer in 2009.
BYD, with their contract with VW and 4+ large Chinese car manufacturers, may become the first and largest mass producer of lithium batteries for PHEVs and BEVs.
With a local Chinese market potential of well over 1 000 000 battery packs per year, the unit price should fall rapidly.
The export potential for lower cost vehicle battery packs is almost beyond imagination.
It seems that W.B. knew what he was doing by investing in BYD.
Will we see lower cost BYD PHEVs and BEVs on our market place by 2011?.
Posted by: HarveyD | 17 August 2009 at 06:37 AM