When the management of the Chinese company CATL talked about a new type of traction battery called M3P last August, nothing was said about the timing of its appearance on the market, but at the end of this week the manufacturer admitted that it would launch theirs mass production this year.
Keep in mind that the improved chemistry of M3P batteries will allow them to increase their capacity by 10-20% compared to iron phosphate-based LFP lithium batteries, where CATL is already a leader, but at the same time M3P batteries will become cheaper be considered competing options with a high nickel content and cobalt. CATL Chairman Zeng Yuqun told about it at an event for investors.
As reported last summer, the new-generation M3P batteries, combined with Qilin’s packaging technology, will enable electric vehicles to travel up to 700 km on a single charge, while the cost of the vehicle itself remains reasonable. The head of CATL had to admit that the company could not find a worthy alternative to the developments of competitors who produce batteries with a solid electrolyte. At the same time, the leadership of the Chinese giant, which controls 37% of the traction battery market, doesn’t believe automakers trying to develop batteries themselves can compete with CATL itself. They can compete with second- or third-tier battery makers by strength, Zeng Yuqun concluded.
The recent drop in sales of electric vehicles and hybrids in the Chinese market is due to the actions of internal combustion engine car makers in an attempt to dump stocks in the face of tightening environmental regulations. In the long term, sales of electrified vehicles are not at risk. Manufacturers of the latter also got carried away with price reductions, following the example of Tesla, more than 40 brands offering electric vehicles on the Chinese market did so after the American company.