CATL Reduces LFP Battery Costs 43% and INCREASES Energy Density

Kadle is saying that they are about to slash the price of lithiumion phosphate batteries by an astronomical amount by by the kind of amount we haven't seen in

years. And I mean this discount is

years. And I mean this discount is enormous because at the same time they're discarding the price by potentially up to 40%. They're also

increasing the energy density by 10%.

Now, keep in mind these are the same battery cells that Tesla use for their energy storage products. And Tesla is the world's largest battery deployment

company. I'm talking mega batteries. Kel

company. I'm talking mega batteries. Kel

and Tesla together, they're going to take a massive percentage of the energy storage market with these new batteries over the next 12 months. Kadel have just

launched a new lithiumion phosphate battery. The manufacturing cost is 40%

battery. The manufacturing cost is 40% lower than their existing lithiumion phosphate batteries which are some of the cheapest in the industry. [snorts]

What does this mean? What will the price end up being for consumers? What will

this how will this affect electric cars?

I'm telling you it'll affect them in a big way because these batteries are not only much much cheaper, they also have higher energy density

than the previous generation batteries.

And these aren't just batteries that have been announced and speculated on or talked about. They're actually being

talked about. They're actually being shipped to cons to customers right now.

Kadel have already shipped literally gigawatt hours of these batteries. In

fact, someone from KD that works there has just emailed me to say we're going.

This is all happening right now. Hello,

my friends. Welcome to the channel. I'm

Sam Evans. You're watching the Electric Viking. Guys, there's some press

Viking. Guys, there's some press releases. There's some information here.

releases. There's some information here.

I got an email about this. There's an

article on cenpost.com. None of that really tells you what you need to know to be honest. It doesn't. It's a in fact the information being released is kind of confusing.

So, I'm going to break it down. You

know, basically understand what exactly these batteries are and what the difference is between these and the previous generation and how that will actually affect the cars we buy.

Now, keep in mind as well, these these batteries will go into Tesla vehicles, Tesla EVs that use CHL lithium phosphate batteries, and they're going to be going into Tesla mega packs. So, that won't

happen within a month, but it will happen next year. CL have released their new 587 amp hour cells, and they're

lithium phosphate. They're not NMC.

lithium phosphate. They're not NMC.

Kadle specifically announced the launch of their fifth generation lithiumion phosphate batteries earlier this year and I did a video on those at the time.

But here's some more information. The

energy density is 434 W hours per liter and that's pretty good in comparison to prismatic cells. It means the energy

prismatic cells. It means the energy density is approximately 170 W hours per kilogram which is just slightly higher than BDS at 165 W hours per kilogram.

So, not groundbreaking energy density, but the price is going to be groundbreaking. It already is. I mean,

groundbreaking. It already is. I mean,

you can already buy them at the price that I'll reveal to you in just a second. First of all, interesting. The

second. First of all, interesting. The

capacity is 587 amp hours per cell. The

format as well matches the lineage of Kad's 280 amp, then they changed from 280 amp to 314 amp lithium phosphate, then they went to 587.

All of these are LFP. You can still buy these other cells by the way as well, but essentially this is kind of at the iteration that we've been seeing. Kad's

grid storage batteries use lithiumion phosphate exclusively. They don't use

phosphate exclusively. They don't use NMC. Why? Safety, cycle life, cost

NMC. Why? Safety, cycle life, cost advantages, and also they've had zero fire incidents. Kadel have more than a

fire incidents. Kadel have more than a thousand battery storage projects globally, and not one of them has ever caught fire. That's a pretty good

caught fire. That's a pretty good record. Here's the thing, though. These

record. Here's the thing, though. These

new batteries will have a 42% cost reduction. Now, that will mean these

reduction. Now, that will mean these will be the cheapest lithiumion phosphate battery cells in the world.

And they're actually quite a big large format energy storage prismatic cell.

So, not a cylindrical cell, but a prismatic cell. But they're one of the

prismatic cell. But they're one of the biggest we've seen so far, guys. Typical

EV lithium phosphate battery cells are 120 to 200 amp hours. And these are 587.

So they're about three times the size of your typical prismatic battery cell. So

this means basically the cells are designed for grids scale energy storage, renewable integration, peak shaving, commercial battery storage, utility

battery farms, industrial micro grids, not for cars. But I'm hearing there will be cars using them. I mean, basically K cable are not marketing these for cars,

but you certainly can use them for cars.

And here's [snorts] the thing. If the

batteries are a lot cheaper, how much cheaper are they going to be? Well, the

numbers are pretty crazy. $40 US per kilowatt hour. Currently, lithium

kilowatt hour. Currently, lithium phosphate prices are about $55 to $60 per kilowatt hour. So, we just brought the price of batteries down

significantly by nearly 40%. With this

new battery innovation or this new these new cells from Kle and that is actually pretty insane. Why is it that they can

pretty insane. Why is it that they can bring the price down so much? Well, one

thing is they are able to produce one cell every 2 seconds. So, their

production line's really really fast and because the cells are bigger actually the manufacturing process is simpler. To

give you some context guys, the energy density is actually class leading for energy storage. Energy storage 434 watt

energy storage. Energy storage 434 watt hours per liter. That's extremely high.

Previous top tier energy storage batteries, lithium phosphate, were between 380 to 400. So, this is the highest I've seen for energy storage batteries. And of course, like I said,

batteries. And of course, like I said, this will benefit Tesla. They'll be

using these in their mega packs, in their their home power walls. It's going

to be actually a really good for customers because it should bring the price of your power walls down and the energy density of the power walls should increase at the same time.

What's the energy density increase? It's

about a 10% increase in energy density.

So higher energy density means fewer containers and that means lower installation cost. All round energy

installation cost. All round energy storage batteries will come down in price significantly over the next 12 months. Here's the thing as well.

months. Here's the thing as well.

They're rated for 10,000 plus cycles at 80% capacity, meaning a 30 plus year lifespan for stationary grid usage. 80%

capacity after more than 10,000 cycles.

Kel is saying, yeah, 30 plus years lifespan means really it means it's a different economic situation for a business. If you're looking at this from

business. If you're looking at this from a business perspective, you're not going to come in and say, "Well, these batteries going to last us for 10 or 15 years." you're going to be looking at it

years." you're going to be looking at it saying they're going to last us more than 30 years.

KD's production cap capability is massive as well. The facility where they're making them can produce 220,000 cells every single day at 587 amp hours

each. A single cell stores roughly so

each. A single cell stores roughly so that's a very big single cell. Think

about 1.88 kw hours. Meaning you'd only need about 30 of these or 35 even 40 to power an EV. So not many batteries would be needed. But in terms of actual

be needed. But in terms of actual output, this means that Kadle can put out 414 megatt hours of these batteries

every day or 15 gatt hours annually.

And really if the demand is there, and it will be at least in the short term, then what KDL can do is just start up another factory. And I'm sure they can

another factory. And I'm sure they can do it very very quickly doing the same stuff, same production line. But 150

gwatt hours that's well that's a lot of batteries. Here are the numbers behind

batteries. Here are the numbers behind Kad's energy storage. They're becoming

well they are the biggest in the world.

Kad's total revenue from energy storage was 51 billion in 2024.

Uh their total energy storage revenue was 57.3 billion R&B. So that's their actual

billion R&B. So that's their actual profits. So it's about $10 billion.

profits. So it's about $10 billion.

Growth rate is huge. and batteries uh energy storage batteries account for 16% of their total revenue and they're rising fast as a percentage of revenue.

That means KD's battery battery storage is now one of the largest grid storage suppliers on Earth. And obviously that doesn't include Tesla. If you include this the cells that Kal is giving to

Tesla, they are the largest on the planet by a significant margin versus anyone else. Now, of course, with these

anyone else. Now, of course, with these new battery cells going to market, um they will increase their market share.

But remember that Kadel are not not backing this up with doing nothing. They

have their new sodium, the Naxtra battery, the sodium battery. If you're

looking for a place to invest your money, well, I've got two ideas here.

One, I'm considering investing in the phosphate mine that I did an interview with the owner the other day. And also,

KDL. That's probably the two companies that I think have the most opportunity for growth. And I'm not talking about

for growth. And I'm not talking about speculative growth like, you know, companies could build robots. We don't

really know how good it's going to be.

Um, it's going to happen, but when will it happen? How much money will they

it happen? How much money will they make? What will their competitors be? We

make? What will their competitors be? We

know Kale's market share. We understand

that. We understand how much phosphate's needed in lithium phosphate batteries.

How much phosphate is in the world in the west? Very, very, very, very, very,

the west? Very, very, very, very, very, very little battery grade phosphate.

Almost none. So, that's two quantities we can understand. These cells, what are they designed for? Well, primarily

designed for long duration renewable storage. That means home batteries and

storage. That means home batteries and big batteries. But there's no reason you

big batteries. But there's no reason you couldn't use these in an EV as well. The

huge capacity and cost reduction targets though are really going after solar and battery farms, wind and battery farms, 24-hour renewable grids, industrial peak

load balancing, so factories for example, mega pack competitors, Tesla's mega packs, etc. These cells though they are a compet they are a competition to Tesla's mega

pack. That said though Tesla uses Kal

pack. That said though Tesla uses Kal cells inside its mega packs as well but they will rival BD's ESS cube. Uh the

EVE 320 amp container cells. So Eve

energy make batteries for EVs and for energy storage in China. Then there is 300 to 330 amp battery cells for energy storage. Kadel are going to dominate

storage. Kadel are going to dominate this market. They already got a big a

this market. They already got a big a big market share, but they're going to take more market share. So guys, let's summarize the actual batteries. They're

lithium phosphate large format prismatic energy storage cell. The biggest format energies prismatic storage shell we've ever seen in the market. They have 434 watt hours per liter of energy density.

[snorts] 10% energy density improvement over the previous generation at a cost potentially 30 to 40% cheaper. They're

designed for grids scale battery storage. They bring the cost down while

storage. They bring the cost down while okay analysts are saying 42% but I think that might be a little bit exaggerated but it's a lot production at 220,000 per

day one cell every 2 seconds considering how big they are that's a lot failure rate well we've never seen any failure rate in any lithiumion phosphate batteries for energy storage from KD

ever in more than a thousand storage projects mass deployment is underway there is already 2 gawatt that have been shipped within the last few days.

What does this mean? Cheaper grid

storage, cheaper home batteries, faster renewable adoption, lower dollars per kilowatt hour for solar and wind. The

battery prices, as I've said every year, keep coming down. Batteries keep getting better. Energy density keeps getting

better. Energy density keeps getting better. Because here's the thing, it's

better. Because here's the thing, it's not just a price reduction of potentially 40%. It's also the fact that

potentially 40%. It's also the fact that at the same time, they're increasing the energy density by 10%. So really that's closer to a price price reduction of

maybe 45 even potentially 50%.

What does this mean for Western companies um and other rivals who sell energy storage batteries? Well, it means that they'll lose some of their market share. But that said, this sector is

share. But that said, this sector is growing very fast. This news may not seem that big, but actually it's a huge deal. What it means is that KDL's rivals

deal. What it means is that KDL's rivals will have to reduce the price of their batteries to compete. Otherwise,

suppliers will just simply order from KDLE. And why wouldn't you? I mean, they

KDLE. And why wouldn't you? I mean, they have nearly 40% market share worldwide in the global battery market. So, they

have to. Eve Energy will have to respond. B will have to respond and

respond. B will have to respond and lower their prices. This is great. This

is this is good for all of us. It's good

for the planet. It's going to reduce the cost of solar. It's going to reduce the cost of um ultimately not of solar itself, but solar and battery systems. It's going to reduce the cost of electricity on a global scale, and it

will actually make a really big deal.

But I think sodium batteries will take over. Give it a few years. Give it some

over. Give it a few years. Give it some um increased production and we're going to see sodium batteries come in and undercut the price of these batteries.

Thanks for watching.