BYD’s shares rally after rolling out new technology it claims charges EVs in five minutes
Shares of China’s BYD surged on Tuesday following the announcement of a new technology that promises to charge electric vehicles (EV) as quickly as refueling a gasoline car.
BYD’s Hong Kong-listed shares soared over 6% at the market open, reaching a new 52-week high. The stock, currently trading around 4.2% higher, has seen a year-to-date increase of over 50%.
Meanwhile, BYD’s Shenzen-listed stock price also rose by over 2% on Tuesday morning before retracting some gains.
The surge came after BYD introduced its new “Super e-Platform” technology, boasting peak charging speeds of 1,000 kilowatts. The company claims vehicles using this technology can achieve a range of 400 kilometers (approximately 249 miles) with just 5 minutes of charging.
CNBC was unable to independently verify these claims.
In comparison, Tesla’s latest superchargers offer up to 500 kilowatts of charging power, providing up to 270 kilometers of range in 15 minutes. Germany’s Mercedes-Benz Group recently stated that its all-electric CLA can recharge up to 325 kilometers in 10 minutes.
“The ultimate solution is to make charging as quick as refueling a gasoline car,” said Wang Chuanfu, chairman and president of BYD, during the technology’s unveiling.
The breakthrough addresses range anxiety, a major concern hindering EV adoption, which refers to the fear of running out of charge before reaching a destination.
Independent China autos analyst Xing Lei described BYD’s new battery platform technology as “out of this world” and a significant 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 stated in a LinkedIn post.
BYD announced that its Han L sedan and Tang L SUV will incorporate the new “Super e-Platform,” with both EVs already available for pre-sales in China. The company plans to deploy over 4,000 ultra-fast charging stations across China to support the new platform.
BYD has not disclosed the investment amount for the new facilities or the timeline for availability of the ultra-fast charging stations to consumers.
Earlier this month, BYD initiated a sale of its Hong Kong shares to raise up to $5.2 billion, with the funds expected to support research and development efforts among other areas.
A change in charging behavior?
The average range for EVs in the U.S. is nearly 300 miles on a single charge, with charging times ranging from 20 minutes to several hours based on the car and charging point speed.
“Speedier charging is definitely a plus, but it ranks behind overall battery range and convenience of charging ports as priorities for EV owners,” said Michael Dunne, founder and CEO of Dunne Insights.
“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 suggested that BYD’s fast-charging platform could potentially alter the behavior of EV owners.
“Few EV owners charge their car from zero to full battery charge,” Dunne explained. “Instead, they tend to top up like we do with our phones. So, the ‘5 minute charge’ could change that behavior.”
Companies have implemented various strategies to address range anxiety, from including fuel tanks for battery charging to establishing networks of battery swap stations for quick battery replacements.
Notably, Chinese electric car company Nio recently announced a partnership with battery giant Contemporary Amperex Technology to create an extensive battery swapping service network for passenger vehicles.
CATL is also investing $350 million into Nio’s power unit as part of the collaboration.
— CNBC’s Evelyn Cheng contributed to this report.
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“I am currently in the process of planning a trip to Europe next summer.”
“I am planning a trip to Europe next summer.”
