Chinese electric auto company BYD would like to sell its car batteries to American and European automakers, according to a report in the Wall Street Journal.
No kidding, what fledgling electric car company/battery maker wouldn’t like to sell their technology to a larger supplier?
The Journal provides no clarity on who the Chinese company is in talks with, or at what scale. We don’t know if BYD will sign up to provide a large amount of batteries or just a few for a select group of car companies.
Tesla is signed up to a deal with Diamler to provide batteries, but it’s only for 1,000. Meanwhile, Diamler is working on its own technology. As is GM, as are independent battery makers ENER1 (HEV), and A123 Systems. A lot of people are working on making better car batteries.
BYD’s competitive advantage, to this point, is that it makes relatively low cost batteries. It is the company that makes a $22,000 electric car. However, with so many companies working on battery technologies, any deal BYD makes could be short term as automakers wait to see who emerges with the strongest, cheapest technology.
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