Will last 16 years or 2 million km in China created a long-lasting battery for Tesla

Chinese company giant that produces the batteries for Tesla Inc. and Volkswagen AG, created the battery can work at a distance of 1.4 million miles (2 million kilometers), the industry — benchmark and a potential boon for automakers trying to motivate drivers to purchase electric vehicles, according to Bloomberg.

Прослужит 16 лет или 2 млн км: в Китае создали долговечный аккумулятор для Tesla

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“The company Contemporary Amperex Technology (CATL) is ready to release the battery service life which is 16 years or 2 million kilometers (1.24 million miles),” — said the Chairman of the Board of Directors Zeng Yicun in an interview in the headquarters of the company in Ningde, in the Southeast of China. According to Bloomberg, the warranty on the batteries currently used in electric cars, covering about 150 000 miles (241 400 km) and 8 years of service.

Extension of this period is seen as a key step forward, in addition, a new type of battery can be used in another vehicle. The novelty will reduce the costs of owning a electric car that will have a positive impact on the industry, which seeks to regain the sales momentum lost due to the outbreak of coronavirus and falling oil prices have made diesel fuel more competitive.

“If someone makes an order, we are ready to fulfill it,” said 52-year-old Zeng, without specifying whether the contracts for the products. The new product will cost about 10% more expensive than the standard batteries installed in electric cars, says Zeng, whose company is the world’s largest manufacturer of batteries.

Concerns about the need to replace batteries after a few years — one of the factors because of which consumers are reluctant to accept electric vehicles in my life. Last year, Tesla said that it will start production of battery that can work a million miles (1.6 million kilometers), and in may, 2020 General Motors Co. said that had almost developed a battery that can withstand a distance equal to 50 laps around the planet.

Anticipating a quick return to the growth industry of electric vehicles, CATL invests in research and development of battery technology. Although the outbreak of the coronavirus and will lead to a decline in sales in the course of this year, the demand for electric cars will increase at the beginning of 2021, said Zeng, who founded CATL ten years ago.

Car buyers, do not invest during a pandemic, create the demand that will be executed next year, said Zeng. Customers CATL are BMW AG and Toyota Motor Corp.

Zeng’s comments confirm the view that electric vehicles can withstand the economic downturn caused by a coronavirus, better than cars on petrol. Cars with batteries will take up 8.1% of all sales next year in China, which accounts for the largest share of global sales of electric vehicles, and up to 5% in Europe.

“A pandemic can have a lasting effect for 2020, but will not be a major factor next year, said Zeng. — We have great confidence in the long term.”

In February 2020 CATL signed a two-year contract to supply batteries for Tesla, which is a great boon to Chinese companies. American leader in the production of electric cars so far mainly worked with the Japanese company Panasonic Corp. and South Korea’s LG Chem Ltd.

Batteries CATL designed for the sedan model 3, produced at a huge new Tesla factory near Shanghai, which started deliveries around the beginning of 2020. Batteries — the most expensive part of electric vehicle, so the suppliers of these components have the ability to reap the lion’s share of the profits of the entire industry.

Zeng said he often shares his thoughts with the founder and owner of Tesla Elon Musk, when they exchanged text messages about the development of technology and business. According to Zeng, CATL strengthens their relationship with Tesla, and their agenda includes such issues as the use of cobalt batteries.

“We get along great, and he’s a funny guy, said Zeng about the Mask. — He spent days talking about cost, and I am sure that we have solutions”.

Zeng said that Isma has also requested assistance in the production of the ventilator for patients with coronavirus. In March 2020, the American billionaire gave more than 1,000 respiratory machines from China officials in Los Angeles.

The shares of CATL grew up in Shenzhen is about 6 times 2018, the market value of the company reached $ 47 billion. Tesla — certainly the most valuable manufacturer of electric vehicles — the market is about $ 160 billion.

According to Zeng, a “trigger point” for electric vehicles will come after they will overtake gasoline-powered cars, about 2030-2035 years. This view is more ambitious than the point of view of researchers Bloomberg, expected that the shift will occur a few years later.

Zeng said that the company CATL opening a manufacturing plant in Germany, is going to produce more than 70% of the batteries required for BMW — his very first client. CATL also works with the segment of the Audi of the company Volkswagen AG and cooperating with the Porsche.

Zeng did not exclude the possibility of plant construction in the US, although he said the company has no specific plans.

“Our team has been successful in competition with global rivals in overseas markets,” said Zeng.