In 2023, BYD is expected to become one of the top three energy storage system integrators in China and may even compete for the top spot with CRRC Zhuzhou Locomotive. In 2022, BYD was not even in the top ten in terms of domestic energy storage system shipments.
In 2023, BYDs total capacity of vehicle and energy storage batteries it installed in 2023 was approximately 151 gigawatt-hours. EV cars were around 111 GWh. BYD’s installed capacity of energy storage batteries were about 40 GWh in 2023.
Tesla installed 14.7 GWh of energy storage.
2022 data from Wood Mackenzie indicates BYD wasranked fourth in the world in terms of energy storage shipments, with a market share of 9%, tied with Huawei. The top three market shares are held by Sungrow Power Supply (16%), Fluence (14%), and Tesla (14%).
In August 2020, BYD launched BYD Cube, a grid-level energy storage system product, and announced at the Energy Storage International Conference and Expo its intention to actively participate in domestic market development with its new products.
The energy storage battery market was facing overcapacity issues in 2023. The utilization rate of Contemporary Amperex Technology (CATL)’s production capacity in the first half of 2023 was only about 60%. Battery factories that participate in system integration, including BYD’s, are actually digesting excess battery cell capacity by directly participating in system integration to avoid waste.
As a result, some practitioners have spoken out, claiming that system integration has become a low-price channel for battery factories, putting considerable pressure on ordinary large-scale integrators.
Wang Pengcheng, co-founder of Hithium, reiterated that the next 2–3 years will be a life or death game for the energy storage industry. BYD and CATL have taken the lead in advocating for significant cost reductions and further price reductions in the battery production process to uphold their market positions in 2024.
In June 2023, BYD started construction of its global R&D center and energy storage industry park in Longgang, Shenzhen. The planned investment totals approximately RMB 2 billion (USD 281 million), with a projected capacity of 20 GWh. The project is still in intensive construction but it starkly contrasts with the current industry trend of reducing overcapacity and production cuts.
The price of energy storage batteries could continue to decline in 2024.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
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Byd shares are in extreme value category
Tesla is doing so much already.
I’m glad for the lithium refinery Tesla is building in Texas.
I know Elon and Tesla don’t want to, but they need to make sure the U.S. has at least 1 company that is vertically integrated (mining to refining to battery manufacturing) for producing car batteries and megapacks. Going forward, SpaceX rockets and Tesla Megapacks are fundamental to U.S. national security.
That is not an overstatement, just a fact.
Yes, and it would be nice if the administration, other politicians and bureaucrats acknowledged that fact instead of putting up roadblocks and challenges.