Don't Mention The War! BYD Kills Off Combustion? Trade Body Trauma?

TL;DR

Middle East conflict will spike oil prices, making EVs more compelling, while BYD's new 5-minute charging and 620-mile battery threatens to kill combustion engines.

Key Points

• 1.Middle East conflict will significantly raise oil and fuel prices. Analysis from Colin Walker at the Energy and Climate Intelligence Unit shows unpredictability in the region could sharply increase cost per barrel and pump prices.
• 2.BYD announced Blade Battery 2.0 with 621-mile WLTP range and 5-minute flash charging. The battery also boasts a 600,000-mile lifespan and uses cobalt-free LFP chemistry at lower prices.
• 3.BYD is deploying 15,000 megawatt charging stations across China by end of 2025. A 3,000-charger network is also planned across Europe, including the UK, within the same timeframe.
• 4.BYD's flash charging delivers six times the power of a Tesla Supercharger. Tesla maxes at 250 kW; BYD's system outputs around 1,500 kW, compared to a home charger's 7 kW.
• 5.The Xpeng G6 charges at 400 kW, already making EV charging faster than petrol refuelling. A real-world anecdote showed the car reaching 96% charge during a brief motorway toilet and coffee stop.
• 6.BYD's battery announcement may undermine Nio's battery-swap station business model. If 5-minute charging becomes standard, the marginal advantage of 2-3 minute swaps largely disappears.
• 7.European trade bodies like the SMMT face 'trade body trauma' as local content rules could harm UK car manufacturing. UK is post-Brexit and outside EU trade agreements, meaning local content requirements for batteries could disqualify British-made vehicles from subsidies.
• 8.German automakers oppose EU local content rules because they rely heavily on Chinese components and sell large volumes in China. Renault, less tied to China, reportedly supports local content requirements, revealing a sharp split within European industry.
• 9.BMW is highlighted as a winner for its new EV range, particularly a forthcoming saloon model. Despite Volkswagen laying off 10,000 workers, both BMW and VW are seen as better positioned than many rivals who are still resisting the EV transition.