Apr. 2 (NBD) -- BYD Company Limited (BYD), China's electric carmaker, is spinning off its battery unit and the spin-off is expected to be listed in 2022 or 2023, said Shen Xi, deputy manager of BYD's EDV battery unit, at an automobile supply chain innovation forum held on Saturday. The spin-off is expected to be completed within this year.

BYD, known for manufacturing electric cars and buses, started out as a battery factory. Today, it becomes one of the world’s largest battery makers. Shen noted that the battery sales have contributed hugely to its total revenue in 2017, but it's difficult to calculate the exact number as BYD batteries have always been supplied for its own vehicles. 

The spin-off will also allow the battery sales to other companies other than BYD itself. 

It's noticed that the company started to marketize its spare parts unit last year. BYD said that the company is in talks with major automobile manufacturers such as Great Wall Motors, BAIC Motor and Guangzhou Automobile Group concerning power batteries. BYD's batteries are expected to be sold to other companies this year. 

BYD also intends to build several production bases for external clients in the future. By June 2019, 3 to 4 bases will be in place, which helps to meet external demands, said Shen.

According to Shen, after the Qinghai-based plant is completed in 2019, BYD will reach a production capacity of 34 GWh in China.

NBD noticed that in China, the installed capacity of the lithium Iron Phosphate battery is 814.55 MWh from January to February this year, accounting for 35.57 percent of the market share, while the installed capacity of MnNiCo ternary battery stands at 1,370.16 MWh during the same period, taking up 59.83 percent domestic market share.

MnNiCo ternary battery has higher energy density than others. As subsidy recipients are required to make batteries with higher density, the market is increasingly crowded with MnNiCo ternary battery makers.

But with subsidies sliding, the cost will be a major concern in the future.

Shen said BYD expectes to increase the energy density of its Lithium Iron Phosphate battery to 200 Wh/kg from 165 Wh/kg, and he believed that the Lithium Iron Phosphate battery will go side by side with the MnNiCo ternary battery for a long time, being applied to different car models.

Email: tanyuhan@nbd.com.cn