From BMW and Toyota to Panasonic, Samsung, and BYD, companies around the world are in a heated competition to develop the ultimate high-performance green EV battery.
As the global demand for electric vehicle (EV) batteries is expected to surge dramatically by 2030, companies are investing heavily in emerging technologies to secure a leading market position. The Beijing Auto Show in April highlighted this race when CATL, the world’s largest EV battery manufacturer, unveiled its Shenxing Plus battery. Promising over 1,000 kilometres of range on a single charge—enough to travel from Guangzhou to Wuhan or London to Berlin—this battery can also reach 600 kilometres with just a 10-minute charge, as CATL’s Chief Technology Officer Gao Huan proudly noted.
Chinese companies have been at the forefront of advancing lithium-ion batteries, introducing cells with longer ranges, shorter charging times, and extended lifespans at an unprecedented rate. However, with a tenfold increase in global EV battery demand anticipated by 2030, there is a global push to develop next-generation technologies.
The drive for innovation is motivated by various factors, including cost reduction and the avoidance of supply chain issues. Additionally, these advancements may benefit the environment by decreasing carbon emissions linked to the extraction and production of certain minerals, according to a McKinsey report.
Chinese economist Ren Zeping emphasised in 2022 that “whoever wins the battery war will win it all,” highlighting the central role of battery technology and performance in advancing the EV sector.
LFP vs. NMC
Currently, EVs typically use one of two types of lithium batteries: LFP (lithium iron phosphate) or NMC (nickel manganese cobalt). LFP batteries are known for their safety and longer lifespan, while NMC batteries offer higher energy density. LFP batteries have become increasingly popular in China due to their safety and lower cost compared to NMC batteries, which contain expensive cobalt and nickel. They also have a longer lifespan and are less harmful to the environment, as they do not involve the heavy metals associated with significant ecological damage.
The environmental impact of mining for cobalt and nickel has raised concerns, with reports indicating that the automotive industry is a major driver of mining-related deforestation globally.
Exploring New Options
The push for new battery technologies is partly driven by the need to reduce reliance on critical raw materials such as lithium, cobalt, nickel, manganese, and graphite, which are sourced from a limited number of countries and are subject to volatile price fluctuations. Sodium-ion batteries, which use abundant sodium extracted from sea salt, are one promising alternative. CATL introduced its first-generation sodium-ion battery in 2021, and several other Chinese companies are following suit.
Sodium-ion batteries are considered a viable option due to their lower cost and environmental benefits, although they currently offer lower energy density compared to lithium-ion batteries. They are expected to be particularly useful for low-speed vehicles, electric scooters, and energy storage systems, especially in cold climates.
China’s Competitive Edge
China is making significant strides in battery technology. The country has dramatically increased its patent filings related to sodium-ion technology and is ahead in commercialising these new cells. Chinese companies like Farasis Energy and HiNa Battery are already producing EVs with sodium-ion batteries. BYD and CATL are also investing heavily in this technology, with BYD building a significant sodium-ion battery plant.
All-Solid-State Batteries
All-solid-state batteries, which replace liquid electrolytes with solid ones, are another promising development. They offer higher energy density, improved safety, and potentially longer lifespans but face high manufacturing costs. Major players like Toyota, CATL, and Panasonic are investing in this technology, aiming to overcome production challenges and reduce costs.
China has committed substantial resources to advancing solid-state battery technology, with significant investments and a dedicated fund to support development. While the technology shows promise, its future success will depend on overcoming technical and cost barriers. Analysts suggest that the period around 2028 could be pivotal for the mass production of solid-state batteries.
The competition in battery technology is fierce, with global players from Japan, South Korea, Europe, and the US all striving to lead the field. China’s substantial investment and early advancements provide it with a strong position, but the final outcome of the global race remains uncertain as the technology continues to evolve.
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