Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd (CATL) is set to begin mass production and delivery of batteries based on its new materials technology, M3P. This technology is expected to outperform nickel and cobalt-based batteries and is cheaper to produce. CATL’s chairman, Zeng Yuqun, said that M3P batteries will have a greater energy density and will perform better than lithium-ion phosphate batteries, which is currently a market CATL dominates.
Speaking at an online investor briefing, Zeng said that CATL had been struggling to come up with a technologically feasible and competitive product based on solid-state batteries, a competing technology that is also being researched by Japan’s Toyota Motor Corp and Germany’s Volkswagen.
See also: CATL to supply Tesla with new M3P batteries for Model Y
CATL, the world’s biggest battery maker, is responsible for more than a third of the sales of batteries for electric vehicles (EV) worldwide. The company’s dominance has attracted attention from Chinese President Xi Jinping, who said earlier this month that he was both “pleased and concerned” over its rise.
However, a number of CATL’s customers, including Tesla, Volkswagen, BMW, and Ford, have complained about its market position. Some have opted for alternative suppliers or chosen to develop their own batteries.
When asked about the impact of rival batteries on CATL’s market share, Zeng said that he expected them to have more of an impact on second-tier and third-tier battery makers, and that CATL would remain the primary battery supplier.
Despite recent inventory clearance efforts by combustion engine car makers ahead of a change in emissions rules, Zeng remains confident about the overall sales outlook for electric vehicles in China. More than 40 brands have slashed vehicle prices in China in recent months, deepening a price war ignited by Tesla’s first salvo in January.
See also: CATL’s Qilin Battery Enters Mass Production, Boasting 13% Higher Capacity than 4680 batteries
CATL’s new materials technology, M3P, is set to revolutionize the battery industry by offering a cheaper and more efficient alternative to nickel and cobalt-based batteries. Although the company faces competition from solid-state batteries, it remains confident in its market position and is set to remain the primary battery supplier to many of the world’s leading automakers. As the market for electric vehicles continues to grow, the demand for batteries is only set to increase, and CATL is well-positioned to capitalize on this trend.
In the words of Zeng Yuqun, “We are confident that M3P batteries will perform better and cost less than nickel and cobalt-based ones. With this new technology, CATL is set to revolutionize the battery industry and help accelerate the transition to a cleaner and more sustainable future.”
