BYD’s Blade Battery: Reducing Reliance on Nickel and Cobalt

Chinese electric vehicle manufacturer BYD is implementing a sustainability strategy that could have major implications for the mineral supply chain.

Originally a battery manufacturer, BYD has grown into a global innovator in the sustainable transportation sector. Its business operations are aligned with its sustainability goals, which in turn contribute to global emission reduction targets.

BYD is working towards carbon neutrality across its whole value chain by 2045. It also aims for a 50% reduction in the carbon intensity of its operations by 2030, using 2023 as a baseline.

BYD’s mission to “cool the earth by 1°C” guides these initiatives. Through its development of a zero-emissions ecosystem, BYD has removed more than 16 million tonnes of carbon emissions worldwide since its founding in 1995.

Blade Battery innovation and material reduction

At the core of BYD’s electric vehicle production is its Blade Battery. It is recognised for its safety, low-temperature performance and longevity.

A key feature of its design is the manufacturing process, which reduces reliance on scarce resources, specifically nickel and cobalt. This reduction could lessen the ecological damage often associated with the mining of these materials.

Moving away from dependency on nickel and cobalt could also signal a change in future demand within the battery metals market.

The cells inside the Blade Battery are arranged in a honeycomb-like structure. This design optimises the battery's strength, allowing it to withstand high levels of force.

The battery is designed to last for more than 15,000 charge and discharge cycles, which exceeds the typical lifespan of a vehicle. This longevity is a critical component of BYD’s approach to a circular economy.

Advancing a circular economy for battery metals

The extended lifespan of the Blade Battery means that, at the vehicle's end-of-life, the batteries can be repurposed.

They are often recycled for use in energy storage systems or in lower-speed electric vehicles. This strategy contributes to a circular economy by maximising the use of resources and integrating renewable energy solutions throughout the supply chain.

From a mining perspective, this focus on recycling and reuse represents the growing importance of secondary material sources, which could influence long-term demand for primary raw materials.

An example of BYD's wider sustainability efforts can be seen in its package material optimisation project at its base in Thailand, which traditionally generates a large amount of industrial waste from non-recyclable plywood, iron frames and rust-proof bags. BYD is shifting its packaging system to use recycled steel boxes. After delivery, a dedicated team sorts the packaging materials to be sent back for reuse.

According to BYD, this change is expected to reduce industrial waste at the base by approximately 30-60% while also lowering production and disposal costs.

A holistic approach to sustainable operations

Zhao Jianping, Chief Sustainability Officer for BYD, emphasises that the business has been "committed to green and sustainable development since its establishment".

He adds: "Along the way, BYD has been constantly thinking and practicing, moving forward steadily on the road of paying attention to the destiny of mankind and improving the well-being of relevant parties and continuously contributing to global sustainable development.”

BYD is also working to implement efficient wastewater management systems across its facilities. Wastewater is classified and treated based on its source and composition. Industrial wastewater is collected and treated in the facility’s treatment system, while domestic wastewater is processed through septic tanks to comply with local standards.

Treatment stations at BYD’s main operating sites use processes like coagulation precipitation, dissolved air flotation and phosphorus removal. BYD has developed an online monitoring system to track wastewater discharge and ensure its water treatment techniques comply with national laws and regulations.