On February 25^th 2024, BYD announced that it plans to step up R&D to develop batteries for the 2-wheeler and larger e-motive sector following a major fire in China.

FinDreams, a wholly owned subsidiary of BYD, will be stepping up investment into batteries for the e-motive sector following a tragic fire that killed 15 people in Nanking, China on February 23^rd 2024. Although the cause of the fire is yet to be confirmed, it allegedly started near e-motive parking bays, sparking strong discussions about the safety of e-motive products in China. This headline is not exclusive to China however, with multiple e-bike and e-scooter fires being reported in all continents.

Although it has been easy for the media to point the finger at lithium-ion batteries in general, the root of the cause stems from the quality of batteries being used in such systems and not the technology itself. E-motive products often use low-quality cells that contain a greater number of imperfections and manufacturing inconsistencies than those manufactured by major producers such as BYD. When pushed to the limits during charging and discharging these inferior cells may eventually succumb to their flaws, usually in spectacular style and occasionally with tragic consequences. Improving the quality, consistency and safety of cells for the e-motive market is therefore crucial in reducing risk to life and for increasing the safe adoption of the products.

The e-motive sector is rapidly expanding globally to provide low-cost electrified transport for the masses. Although it is a price-sensitive and low-cost sector, many consumers would likely welcome safer and more reliable devices at the expense of higher purchase costs. Moreover, new legislation may even impose stricter and mandatory standards for the sector, which would likely raise prices across the board. With cheaper lithium-ion batteries gaining more unwanted attention, BYD, which has previously had little to do with the e-motive sector, now looks to capitalise on its position on the back of growing concerns surrounding battery safety by producing dedicated e-motive batteries. It spells an excellent opportunity to utilise its extensive supply chain and LFP production knowledge to bring affordable and safe cells to the market, whilst increasing market share and further squeezing out the competition.

BYD recently overtook Tesla for global battery electric vehicle (BEV) sales in Q4 2023 and it now looks to expand into new territory. With its vastly integrated supply network and immense resources it is certainly not a stretch to believe that new ventures will be a resounding success for BYD, especially in China and the rest of Asia, where there is increased appetite for its products.