CATL to launch next-generation electric vehicle batteries

SHANGHAI — Contemporary Amperex Technology Co. said Thursday it will start mass production next year of its latest electric vehicle battery, which is more efficient and will allow electric vehicles to travel farther on each charge.

The world's largest battery maker is trying to maintain its lead amid competition from rivals such as BYD, which will soon start supplying batteries to Tesla.

The company said the new battery, called Kirin, will increase capacity utilization to 72%, the highest in the world, compared with 50% for the first-generation battery launched in 2019, and boost the battery system's energy density to 255 Wh/kg.

The battery has a range of more than 1,000 kilometers (620 miles) on a single charge, 13% higher than the planned range of major customer Tesla. CATL said the battery also charges faster than existing batteries and is safer and more durable. The Kirin battery is named after a creature in Chinese mythology, and the supplier did not say whether any electric vehicle makers had ordered the new battery.

CATL, which supplies batteries to automakers including Tesla, Volkswagen, BMW and Nio, reported a 24% drop in first-quarter net profit, hurt by a surge in metal costs.

In May, the company said it expected better margins in the second quarter after raising prices and passing on costs to customers.

According to SNE Research, CATL's battery sales volume was 41.5 GWh from January to April this year, more than double that of the second-ranked LG Energy Solution.

CATL is in the final stages of reviewing locations in the United States to produce electric vehicle batteries as the company steps up its overseas expansion, Reuters reported.

The supplier, based in Ningde, Fujian province, will supply cylindrical batteries to BMW from 2025 for use in a new range of electric vehicles.

Tesla is also increasing the output of its "4680" battery, which has about five times the energy of the company's current 2170 cells.