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Recently, Lian Yubo, executive vice president of BYD Group and director of the Automotive Engineering Research Institute, said in an interview with the media, "BYD respects Tesla and admires Tesla very much, and Musk is also friends. BYD will soon supply batteries for Tesla." Lian Yubo mentioned, "Tesla is a very successful enterprise. The Model X and Model S first launched by Tesla are positioned at the high end, making young people feel that Tesla is fashion, innovation, and technology, while the new forces of domestic car building are also learning from Tesla and an example for BYD."

In fact, as early as August 2021, it was reported that BYD would supply batteries to Tesla. BYD will supply Tesla with "blade batteries" in the second quarter of 2022, and the Tesla model equipped with "blade batteries" has entered the C-sample testing stage, according to the Financial Associated Press. At that time, BYD said it would not comment on the above news.

According to the latest retail data released by the Federation of passengers, the retail volume of domestic narrow passenger cars in 2021 was 20.146 million, an increase of 4.4 percent over the same period last year, of which 2.989 million were new energy passenger vehicles, an increase of 169.1 percent over the same period last year. The continued rise in sales of new energy vehicles may be one of the main reasons to stimulate the power battery industry, and the current Chinese battery market will continue to compete for supremacy. Ningde era and BYD occupy a lot of market share. According to data released by the China Automotive Power Battery Industry Innovation Alliance, from January to April 2022, the number of power batteries installed in Ningde era was 30.59GWh, followed by BYD in second place with 14.68GWh, accounting for 70 per cent of the market share, while battery manufacturers outside TOP2, including China New Airlines, Guoxuan High Tech and Honeycomb Energy, can only compete for 30 per cent market share.

However, there are some differences between the Ningde era and BYD. In the ranking of lithium iron phosphate power battery loading, BYD ranked first in the era of anti-super Ningde with an installed capacity of 4.19GWh, accounting for 47.14%. Ningde era ranked second, lithium iron phosphate battery load for 3.05GWh, accounting for 34.29%. Of course, BYD's performance in the lithium iron phosphate power battery market is related to its sales performance of new energy vehicles. On April 3, BYD officially announced that it would stop production of fuel-fueled vehicles, and since then all models have been sold as new energy vehicles. The latest figures show that BYD sold 504000 new energy passenger cars from January to May, of which 114000 were sold in May.

However, Ningde era is, after all, a professional in the power battery industry. According to statistics released by South Korean market research institute SNE, Ningde Times has ranked first in the world with a market share of 32.6% in 2021 and has been the world's largest power battery manufacturer for five consecutive years since 2017. Ningde Times is also known as "Ningwang" by the market. Of course, Ningde era's high market share depends more on the support of the Chinese market, and its customers are mostly car-building new forces or joint venture brands, including Lulai, Xiaopeng, ideal, SAIC-Volkswagen, brilliance BMW, Great Wall Motor and so on. However, the biggest customer of the Ningde era is Tesla, which has been supplying goods to Tesla since July 2020, becoming the largest single customer of the Ningde era for the first time, purchasing power batteries with a total value of 13 billion yuan from the latter, contributing 10 per cent of Ningde's annual revenue.

For automobile companies, in order to ensure the security of the supply chain, they generally do not choose only one supplier. As a carmaker, BYD replaced all its new energy vehicles with blade batteries after the introduction of blade batteries, but now, relying solely on self-supply, BYD's installed capacity in China is second only to the Ningde era. It is understood that at present, Tesla's main battery suppliers include LG New Energy, Panasonic and Ningde Times, and if Tesla chooses to cooperate with BYD, it will greatly increase the market share of BYD power batteries, while the market share of Ningde era will also be reduced. In addition, it is not just Tesla, BYD's power battery business may expand the "circle of friends". Xilai and Xiaomi will use BYD's batteries.

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