It started a three-way war between South Korea, China and Japan as Chinese companies joined the cylindrical battery market led by South Korea and Japan. Cylindrical batteries were mainly used for power tools and home appliances, but as Tesla unveiled a strategy to increase the size of cylindrical batteries for electric vehicles, other finished electric vehicle competitors are also considering adoption. China is poised to threaten the cylindrical battery market following the mid- to large-sized prismatic and pouch batteries.
According to the industry on the 10th, China's CATL, the world's No. 1 companies, EVE, and CBAK, started development with the goal of mass-producing 4680 cylindrical batteries based on ternary systems such as nickel, cobalt, and manganese (NCM) within this year. CBAK, China's first ternary battery maker, and China's fifth-largest EVE, have already begun construction of a 4680 battery plant.
Following Panasonic of Japan, LG Energy Solution, and Samsung SDI, which are already preparing for mass production of 4680 batteries, many Chinese companies are competing for 4680 batteries, making market competition inevitable.
In China, lithium iron phosphate (LFP) batteries are conventional, and only a few companies, such as Lishen, have secured production lines for cylindrical small batteries. However, as many automakers and electric vehicle start-ups, including Tesla, are interested in adopting the 4680 battery, even China is keen to develop and mass-produce the next-generation cylindrical battery.
The 4680 battery is the largest among cylindrical batteries with a diameter of 46 mm and a length of 80 mm. In 2020, Tesla CEO Elon Musk introduced this battery as a next-generation product at the 'Battery Day' event. It is expected that its capacity will be more than five times higher than that of existing cylindrical battery cells.(The output is more than double.)
The 4680 battery can be produced particularly quickly, so mass production cost efficiency is high, and it is greatly advantageous for battery system control and design than before.
Currently, Tesla's key partner, Panasonic, is in the final stages of developing 4680, and is expected to start production in Japan within this year. LG Energy Solution, another battery supplier to Tesla, is also reportedly planning to start developing 4680 batteries and commercializing them through a new line at the Ochang plant within this year. Samsung SDI has also started developing large-sized cylindrical batteries to target major auto customers such as BMW. Lucid from the U.S. is also considering to adopt large-sized cylindrical batteries.
An industry official said, “Supplying to Tesla has to accurately meet the 4680 specification, while other automakers still prefer large-sized cylindrical batteries, even if they have slightly different specifications, such as 4670. As it is very advantageous for productivity, the prospect of the large-sized cylindrical market is very bright.”
By Staff Reporter Tae-jun Park (gaius@etnews.com)