The 2022 Battery Revolution: Kirin Batteries Take the Lead—Will BMW and Tesla Be Next to Suffer?

If you were to choose... If we were to talk about the hottest industry in 2022, it would undoubtedly be new-energy vehicles. Despite the overall economic downturn, the penetration rate of new-energy vehicles reached 27.4% in 2022 (according to data from the China Passenger Car Association for January to November), more than doubling from 13.4% in 2021 and achieving the national target of a 25% penetration rate three years ahead of schedule.

Corresponding to the continued surge in new-energy vehicles is the relentless rise in battery prices. Even Zeng Qinghong, Chairman of GAC Group, directly stated this at the World Battery Conference. “Raising a fuss,” claiming that today’s automakers are essentially just working for CATL.

Power batteries have become the most critical component of new-energy vehicles, truly serving as the lifeblood of the industry. So... What were the key developments in the battery industry in 2022? Can automakers break free from their “wage-earner” fate? Let Kungfu Auto take you through it all.

( 1) “King Ning” Takes the Lead, Tesla Gets Hit Hard

If you were to ask which battery deserves the greatest credit for this recent boom in new-energy vehicles, the answer would undoubtedly be BYD. The blade battery, launched in 2020, has breathed new life into lithium iron phosphate batteries through extreme design optimization, driving the development of the entire industry.

And in In 2022, CATL, a leader in the battery industry, finally unveiled its own solution—the Kirin battery.

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As the culmination of CATL’s technological advancements, the Kirin battery has reached the pinnacle in both performance and efficiency.

In terms of performance, the Kirin battery boasts... With an astonishing energy density of 255 Wh/kg, the CATL Kirin battery enables the Zeekr 001 to achieve a range of over 1,000 km. Moreover, this battery supports 4C charging, allowing it to be charged up to 80% in just 10 minutes. At the same time, the Kirin battery significantly outperforms its competitors in terms of safety, system integration efficiency (thanks to CTP3.0 technology), and thermal management performance.

The key is that the Kirin battery is compatible with both ternary lithium batteries and lithium iron phosphate batteries, and it can also be configured in various versions, such as upright and inverted designs. This means it boasts exceptional versatility. The biggest drawback, perhaps, is its currently high price—but then again, this can’t really be considered a feature of the product.

And The Tesla 4680 battery, already announced in 2020, remains in a “futures” state and still hasn’t reached large-scale mass production. Meanwhile, BMW has once again made a major shift, announcing that it will move from prismatic cells to cylindrical cells, with mass production expected by 2025. Currently, BMW has selected three suppliers: CATL, EVE Energy, and Farasis Energy. As with its previous frequent switching between all-electric and plug-in hybrid platforms, BMW seems to be caught in constant indecision once again, missing yet another crucial opportunity.

Other domestic battery manufacturers have also gone all out. For instance, Svolt Energy has launched the Longlin Jia battery, which features a number of bold and innovative designs that significantly enhance its safety performance. These include an innovative short-blade cell bottom-out explosion-proof valve design, as well as advanced technologies adopted at the battery-pack level. With a “thermal-electric separation” design and a dual-sided cooling system for the dragon-scale armor, the first model will enter mass production in October 2023.

Farasis Energy has launched a new-generation pouch cell battery that boasts unparalleled flexibility in design. Meanwhile, Xinwangda has teamed up with emerging automakers to develop ultra-fast charging batteries. The SFC480 can support the highest charging power; meanwhile, Ruipu Lanjun’s Wen Ding battery achieves an exceptional cell utilization rate in prismatic batteries.

Overall, domestic battery companies are indeed ahead on the technological front.

( 2) Will Ultium batteries take root, and will Tiangong Batteries “revive the old”?

Car manufacturers have also begun developing batteries—but rather than producing batteries themselves, they’re establishing a new battery platform standard and asking battery companies to develop batteries within the framework of this standard. “Draw a circle.”

In this regard, GAC Aion has previously been the best performer—its magazine battery is... Having “tamed” the volatility of high-nickel batteries, they’ve become a trump card in market competition. As we entered 2022, more automakers began to take on this task.

The universally compatible Ultium battery has finally entered mass production. This battery is renowned for its exceptional safety and incorporates seven core battery thermal management technologies, including an integrated liquid-cooling system, cell-to-cell thermal barrier walls, and a large-area rear-mounted explosion-proof valve. Additionally, it employs a cell-to-cell temperature-difference control technology to ensure consistent aging across all cells, thereby extending the battery’s lifespan.

In addition, the OTE battery casing features a high-strength grid-like structure, and the entire pack’s resistance to compression meets the national standard requirements. Three times as much. The battery management system featuring wireless communication, pioneered by Ultium, reduces the wiring harness in battery packs by 90%, significantly lowering the risks associated with aging of conventional wiring harnesses. The intelligent battery health monitoring system, which integrates both vehicle and cloud components, can continuously monitor for potential runaway risks and promptly initiate rapid cooling of the battery.

In the Ultium system, battery safety and intelligent control have been elevated to a new level.

The public's The Unified Cell battery is more like a production standard that encourages battery companies to adopt the more efficient stacking technology. The batteries themselves will be shaped similarly to short-blade batteries, allowing for better arrangement and layout. Volkswagen hopes that this approach will enable everyone to transition to a unified battery platform.

However, what surprised Gungfu Auto the most was Neta’s TianGong battery. As a battery technology developed by a new-wave manufacturer, it actually set its sights on... In terms of “creating the old,” most of the efforts are focused on optimizing the traditional battery sector.

TianGong Battery remains the flagship product. CTP technology—but unlike blade batteries, which completely eliminate modules altogether—it instead adopts large modules in place of small ones. The approach to enhancing safety isn't through structural optimization; rather, it relies on material enhancements and stacking techniques to boost safety, such as the use of aerospace-grade aerogel insulation material with ultra-low thermal conductivity. Perhaps the biggest highlight is the implementation of a customized BMS solution tailored specifically for each vehicle model—reportedly, this can increase winter range by up to 20%.

But regardless, there wasn't any overly flashy tech demonstration—there was rather a relatively... The emergence of a “pragmatic” new force seems like a good thing as well.

( 3) Aion “rises up”—is “King Ning” in danger?

Zeng Qinghong to CATL Not long after the “initiative” was launched, Aion announced that it had started manufacturing batteries—truly prepared for the challenge.

Aion’s investment in its Inpact battery reaches as high as With an investment of 10.9 billion RMB and covering an area of 666 mu, this is currently Guangzhou’s largest project integrating power batteries and energy storage batteries. The factory buildings are expected to be delivered in October of this year, and the first-phase production line with a capacity of 6 GWh will be fully operational by March 2024. By the end of 2025, the facility will reach a total production capacity of 36 GWh, sufficient to meet the installation needs of 600,000 vehicles.

To achieve in-house battery production, Aion went through a very challenging three-step journey. First, it consistently insisted on independent R&D—even during the era when all automakers relied on CATL. Aion remained steadfast in its own technological path, serving as a significant milestone in CATL’s battery technology development. “Partners.” Then came the move to break free from Ning Wang’s support and help Zhongchuanghang—this third-tier battery company—to leapfrog into becoming one of China’s leading power battery manufacturers. And now, we’ve reached the stage of building our own production lines.

It is precisely due to years of technological accumulation that we have the ability to counter. It’s precisely the confidence and courage of “King Ning” that have enabled Aion to become the first among the new forces to develop its own batteries. Besides Aion, Geely and Chery are also getting ready to enter the fray, each having established its own power battery companies.

Meanwhile, the penetration of automakers into the battery industry is also intensifying. In addition to Volkswagen’s controlling stake in Guoxuan High-Tech, Geely and NIO have both taken equity stakes in Xinwangda, while Mercedes-Benz has invested in Farasis Energy. It’s clear that automakers are now moving toward becoming more “Ningde-like”—no longer putting all their eggs in one basket and striving to regain the upper hand.

On the contrary, in addition to investing in Neta and AiChi, CATL’s collaboration with Changan and Huawei has also resulted in the launch of Avatr’s first model—the Avatr. 11. Huawei does not hold any equity in this venture, and CATL plays a remarkably important role in it.

Car companies don't want to be controlled by battery companies. “Being ‘choked’”—battery companies are also worried that automakers might turn their backs on them, and both sides are guarding against each other.

( 4) Kung Fu Slap the Table

Whether it's the new energy vehicle industry or the power battery industry, 2022 was a year of considerable significance. The sustained rise in prices has caused batteries to account for 40% to 60% of the total vehicle cost, leading to an “imbalance in the relationship” between automakers and battery manufacturers.

As a result, automakers have begun demanding greater influence—such as setting standards and taking controlling stakes in battery companies—as well as pursuing the goal of manufacturing batteries themselves. Meanwhile, battery companies have also become more proactive in their efforts to survive, achieving numerous technological breakthroughs and starting to exert influence over automakers. “Counterattack.”

In 2023, the ongoing rivalry—and mutual dependence—between automakers and battery companies will continue, making the automotive industry even more exciting.

Of course, the quality of a battery is also related to its material. Many appliances, new-energy vehicles, and new-energy battery packs use high-end materials that are fire-retardant, flame-resistant, heat-resistant, and prevent outgassing. ROHS-compliant materials offer greater stability and are suitable for PC, ABS, PP, PBT, PA6, PA66, and more. They are also the material supplier of choice for major brands in the new energy sector.

Next up is also the era of new energy. 2023 was also a stage when new energy sources doubled in growth.