BYD, HPQ Silicon and BMW – The battery race escalates

BYD – 503 km/h: China's battery giant pushes the limits

503.17 km/h on a closed road in Abu Dhabi. BYD has set a new speed record for production vehicles with its electric supercar, the Yangwang U9 Xtreme. The achievement, announced on November 6, was recognised by the FIA, the world governing body for motorsport. Even more remarkable than the speed is the technology behind it. The Chinese group is demonstrating just how far electric powertrains can now be developed.

Four electric motors deliver a combined output of more than 3,000 hp. The new 1,200-volt architecture enables particularly high currents and improves thermal management. According to the manufacturer, a specially adapted lithium iron phosphate Blade Battery achieves 170% higher power density at cell level than the previous 800-volt system. Even at a state of charge of just 20%, it is said to still provide 1,800 kW of power.

However, the supercar's performance, limited to 30 vehicles, cannot be transferred directly to the mass market. In that segment, sales prices, margins and international expansion matter as much as technology.

The speed record highlights a broader trend: China is no longer relying solely on low prices in electric powertrains. BYD is increasingly demonstrating technological excellence too.

HPQ Silicon – On course for success with high-tech batteries

HPQ Silicon is advancing the commercialisation of its silicon battery technology. Through Novacium, its French technology partner in which it holds a 36.8% equity stake, the Canadian company is developing high-performance lithium-ion batteries tailored for the drone, defence, and aviation industries. The focus is on battery cells with silicon anodes, which are intended to enable greater energy storage.

The ENDURA+ GEN4 cell in the 21700 format has a nominal capacity of 6,500 mAh (23.4 Wh). Months ago, the cell received UL 1642 safety certification and passed transport testing under UN 38.3. This established important prerequisites for further commercial use.

Initial customer orders underline the progress. French drone specialist Alta Ares, for example, ordered more than 100 battery packs for its interceptor drones. This followed six months of joint development and successful tests with 10 prototypes. Novacium had already received an order in August for GEN3 battery packs intended for the French army's FPV drones.

There are also tangible results for tactical radios. In early October, Novacium delivered an initial batch of prototype batteries to the French army's technical department. According to the company, these have twice the energy capacity of the batteries used to date. With Aptera Motors, there is also an agreement to evaluate the ENDURA+ cells.

Additional support comes from Canadian funding of up to CAD 3 million to develop production capacity for silicon anode material.

In the hydrogen business, a Novacium-led consortium received just under EUR 1 million in public funding for the METAGENE development project. HPQ is also working with PyroGenesis through the 50/50 joint venture HPQ Silica Polvere on the commercialisation of fumed silica.

With certified battery cells, initial customer orders and publicly funded development projects, the company, valued at just under CAD 50 million, has made important progress.

BMW – Billions invested, but profits slump

At BMW, technological progress and economic reality are currently far apart. While the group is bringing its sixth battery generation into series production, its traditional automotive business is coming under increasing pressure. The latest published quarterly figures show how expensive the transformation of Germany's premium automotive industry can be.

Pre-tax profit fell by 11% in the third quarter to around EUR 2.1 billion. The operating margin in the automotive business fell from 5.2 to 3.4%. For the full year, BMW now expects a margin of only between minus 0.5 and 0.5%. Weak business in China, trade tariffs and additional restructuring costs are weighing on earnings.

Deutsche Bank Research nevertheless remains optimistic. Analyst Tim Rokossa reaffirmed his Buy recommendation on November 5, but reduced the price target from EUR 71 to EUR 66. J.P. Morgan also lowered its price target from EUR 82 to EUR 68 but maintained an Overweight rating.

BMW has already laid important technological foundations. Series production of the new Gen6 high-voltage batteries has been under way in Irlbach-Straßkirchen in Lower Bavaria since October. The group invested around EUR 1 billion in the site. In future, several hundred battery systems are to be produced there each day on two production lines.

According to BMW, the new cylindrical cells offer more than 20% higher energy density. Charging speed and range are expected to increase by up to 30% compared with the previous generation. Further production sites in Europe, China and North America are intended to support the global ramp-up.

Conclusion

BYD is demonstrating the capabilities of modern electric powertrains with its speed record. BMW is investing billions in the industrial production of a new battery generation, but is struggling with declining margins. HPQ Silicon starts one stage earlier. With silicon anodes, initial battery orders and the planned independence of its battery business, the technology developer is opening up additional growth opportunities. The decisive factor will be whether the technical successes achieved to date lead to larger commercial orders.