Chinese battery producer CATL has announced a new fast-charging LFP (lithium iron phosphate) battery able to refuel 400km (250 miles) in ten minutes.
The new battery, dubbed Shenxing (which means ‘god-like movement’) will enter mass production by the end of the year. Electric vehicles (EVs) equipped with the battery are expected to enter the market in Q1 2024.
The Chinese battery giant is a major supplier to Tesla. In 2021, Tesla largely abandoned nickel-cobalt-aluminium batteries for its short-range cars in place of CATL’s LFP batteries.
The EV price war and a downturn in sales have meant that CATL is struggling to maintain its industry lead as the company loses market share to rival BYD.
BYD, an auto manufacturer which makes batteries in-house, held the second-largest global EV market share with 16.2% in Q1.
The price war began in January when Tesla cut prices in China, which prompted several auto manufacturers to follow suit to stay competitive.
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A so-called ‘truce’ to avoid prices deteriorating was enacted. The pledge was later abandoned on 10 July when The China Association of Auto Manufacturers (CAAM) acknowledged it has violated China’s antitrust laws.
Tesla was accused of ‘reigniting’ the EV price war with a fresh round of price cuts on Monday. The auto manufacturer discounted two versions of Model Y by 4% or around $1,900.
Tesla’s stock fell 2.9% in pre-market trading on Monday.