A few weeks ago, a vehicle benchmarking company warned older manufacturers that Tesla, BYD, and other Chinese companies are the best at balancing electric car production and associated costs.
According to Caresoft Global Technologies, the secret is simple: think of the electric vehicle (EV) as it is—electric. The problem for companies like Toyota is that they have approached this technology as an evolution of their current cars.
This approach leads them to use expensive materials and finishes without maximizing their benefits. For example, the absence of vibrations from an electric motor allows companies like Tesla and BYD to prioritize plastics over costly alloys.
Caresoft Global Technologies explained that in combustion-engine cars, the car’s structure requires extra reinforcement, which impacts driving. However, with engines that don’t transmit vibrations, parasitic movements, and noise, these barriers disappear.
Once they understood these differences, researchers published a study in Cell Reports Physical Science comparing BYD’s Blade Battery and Tesla’s 4680 cylindrical cell battery.
BYD vs. Tesla: Which Battery Is Better?
This comparison isn’t a coincidence. BYD’s Blade Batteries use lithium iron phosphate (LFP) chemistry, which Tesla also employs in some lower-capacity models. However, Tesla is known for using nickel, cobalt, and manganese (NCM) batteries.
On paper, LFP batteries are less energy-dense, with lower power output and slower charging. However, they offer two key advantages: a longer lifespan and lower cost.
Producing an LFP battery costs less than an NCM battery. This advantage is crucial for smaller cars or those not requiring long ranges. In China, where most travel is urban and long-distance journeys are rare, LFP batteries dominate the market.
NCM batteries, however, provide distinct benefits. They offer more power, higher energy density, and better mileage performance. With the same size, an NCM battery provides greater range than an LFP battery. However, they’re believed to degrade more quickly and are significantly more expensive to produce.
Comparing the batteries is especially relevant because BYD and Tesla are the world’s largest EV manufacturers.
Researchers found that differences extend beyond chemistry. Tesla’s 4680 battery features cylindrical cells five times larger than in its previous batteries, increasing energy density and extending vehicle range.
BYD, meanwhile, uses “leaf batteries,” an innovative approach that prioritizes longer battery life at a lower cost.
This difference becomes especially clear when analyzing battery cost, weight, materials, and energy output. Researchers calculated that, based on 2024 mineral prices, BYD’s battery costs $10 per kWh less than Tesla’s.
Nickel’s high price plays a decisive role in this cost gap. Although BYD’s cell is heavier, which could hurt performance, the company saves about $650 per 60 kWh battery compared to Tesla.
Performance tests revealed another distinction: recharging the Tesla battery generates twice as much heat as BYD’s. While this doesn’t necessarily impact performance, it requires more complex and likely costlier cooling systems, increasing overall expenses. Additionally, BYD’s battery chemistry, with lower heat generation, should result in a longer-lasting battery.
Researchers didn’t analyze mileage, as range depends not only on the battery but also on factors like motors, vehicle aerodynamics, and frontal area.
However, one thing is clear: BYD’s batteries are cheaper to produce, more stable over time, and require fewer complex external components.
Image | Tiago Ferreira (Unsplash)
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