Core Viewpoint - BYD's subsidiary, Fudi Battery, is aggressively entering the two-wheeler and three-wheeler electric vehicle battery market, promoting the transition from lead-acid to lithium iron phosphate batteries, emphasizing improved performance and safety [1][2]. Group 1: Market Strategy - BYD plans to hold a product launch event for its electric two-wheeler and three-wheeler batteries on May 17, 2025, with the slogan "Lead-acid phase out, Iron-lithium new start" [1]. - Fudi Battery has already established partnerships with several electric vehicle brands, including New Day, LIMA, and Tailin, to develop customized lithium batteries for their models [2]. Group 2: Product Development - Fudi Battery aims to apply passenger vehicle research results to enhance the safety and performance of batteries used in two-wheelers and three-wheelers, following a fire incident in Nanjing [1]. - The energy density of the lithium batteries developed in collaboration with LIMA reaches 160Wh/kg, indicating a significant advancement in battery technology [2]. Group 3: Market Dynamics - The current market for two-wheeler and three-wheeler vehicles predominantly uses lead-acid batteries, which are cheaper but have limitations in terms of range and lifespan compared to lithium batteries [2][4]. - The cost of replacing lead-acid batteries is significantly lower than that of lithium batteries, making them more appealing to price-sensitive consumers [4]. Group 4: Industry Trends - The lead-acid battery market is experiencing intense competition, with major manufacturers reporting declines in net profits despite revenue growth [5]. - The transition from lead-acid to lithium batteries is slow among other manufacturers due to high raw material costs, although there is a growing interest in lithium technology [4][5]. Group 5: Regulatory Environment - Recent policy changes have provided support for lead-acid battery models, allowing for a weight increase, which may benefit their market position [6]. - The Ministry of Industry and Information Technology has introduced new standards that could impact the competitive landscape between lead-acid and lithium batteries [6][7].

Company Insights - BYD's subsidiary, Fudi Battery, is launching a full range of electric batteries for two-wheeled and three-wheeled vehicles, promoting the slogan "Lead-acid exit, Lithium Iron Phosphate new start" [1] - Fudi Battery has already established partnerships with several electric vehicle brands, including LIMA and Tailg, to develop customized lithium batteries with higher energy density [2] - The company aims to leverage its research and development from passenger vehicles to enhance the safety and performance of batteries for two-wheeled vehicles [1][2] Industry Trends - The market for lead-acid batteries in two-wheeled vehicles is mature, but there is an opportunity for lithium battery market growth due to the lack of significant market leaders [2] - The cost of lithium batteries is higher than lead-acid batteries, with replacement costs for lead-acid batteries ranging from 300 to 400 yuan, while lithium batteries can exceed 800 yuan [3] - The competition between lead-acid and lithium batteries is ongoing, with lead-acid batteries currently favored for their safety and lower cost, despite lithium batteries offering better longevity and performance [2][6] Market Dynamics - China's production of lead-acid batteries accounts for over 40% of global output, with production figures reaching 7.843 million tons in 2023, slightly declining to approximately 7.451 million tons in 2024 [5] - The electric two-wheeler market in China has over 400 million units, with nearly 100 million new batteries sold annually, indicating significant growth potential [5] - The export of electric three-wheeled vehicles reached 650,000 units in 2024, with a total export value of nearly 5.5 billion USD, reflecting a growth of about 10% [5]