Shares of China’s BYD surged on Tuesday following the company’s announcement of a new technology it claims can charge electric vehicles (EVs) nearly as fast as gasoline cars can be refueled.
Supercharging the EV Revolution
BYD unveiled its “Super e-Platform” technology on Monday, stating it can achieve peak charging speeds of 1,000 kilowatts. The EV manufacturer, a competitor to Tesla, says this allows cars using the platform to gain 400 kilometers (approximately 249 miles) of range with just a five-minute charge.
CNBC was unable to independently verify these claims.
A Charging Speed Comparison
In comparison, Tesla’s latest superchargers offer charging rates up to 500 kilowatts and can add up to 270 kilometers of range in 15 minutes. Mercedes-Benz Group of Germany announced last week their all-electric CLA will be able to gain up to 325 kilometers of range within 10 minutes.
“The ultimate solution is to make charging as quick as refueling a gasoline car,” stated Wang Chuanfu, chairman and president of BYD, during the launch event, according to a press release.
Addressing Range Anxiety
The breakthrough appears to directly address range anxiety, a major factor preventing consumers from transitioning to EVs. Range anxiety is the fear that an EV’s battery will deplete before the vehicle reaches its destination.
Xing Lei, an independent China autos analyst, described the technological advancements of the new battery platform as “out of this world,” a “heartbreaking” development for its foreign competitors. “Just when everybody’s focus seems to be turning toward smartification, BYD comes right back and says: no no, we are not done with electrification yet,” Lei said in a LinkedIn post.
BYD stated that its Han L sedan and Tang L SUV would incorporate the new “Super e-Platform,” with pre-sales having already begun in China. The company will also build over 4,000 ultra-fast charging piles, or units, across China to accommodate the new platform. BYD has not yet specified the total investment for establishing these new facilities, nor the timeframe for the ultra-fast charging piles to become available to consumers.
Earlier in the month, BYD launched a sale of its Hong Kong shares to raise up to $5.2 billion, Reuters reported. The funds are expected to be used for research and development among other areas. The company did not respond to a request for comment at the time.
A Shift in Charging Behavior
According to the Environmental Defense Fund, the average range for EVs in the U.S. is nearly 300 miles (or 483 kilometers) on a single charge. The time needed to charge a battery-powered EV can vary, ranging from 20 minutes to several hours, depending on the car and the speed of the charging point.
Michael Dunne, founder, and CEO of Dunne Insights, told CNBC via email: “Speedier charging is definitely a plus, but it ranks behind overall battery range and convenience of charging ports as priorities for EV owners. BYD is getting much more skilled at telling their technology breakthrough stories. A traditional engineering company has added an important marketing dimension to their competitive arsenal.”
Dunne believes BYD’s fast-charging platform could lead to a shift in EV owner behavior. “Few EV owners charge their car from zero to full battery charge,” Dunne said. “Instead, they tend to top up like we do with our phones. So, the ‘5-minute charge’ could change that behavior,” he added.
Various strategies are being employed by companies to mitigate consumers’ range anxiety, like including fuel tanks to charge the battery or creating a network of battery swap stations. These allow drivers of participating vehicles to get a fully charged battery in a matter of minutes.
On Tuesday, Chinese electric car company Nio announced a strategic partnership with battery giant Contemporary Amperex Technology, or CATL. The two companies will “create the largest and most advanced battery swapping service network for passenger vehicles,” according to a press release, without specifying a specific date. CATL is also investing a total of 2.5 billion yuan ($350 million) into Nio’s power unit, the release said.
