Author | Zhou Zhiyu

When the penetration rate of new energy commercial vehicles reaches a turning point, Contemporary Amperex Technology is also quickly making moves.

On November 25, Contemporary Amperex Technology announced the launch of multiple battery products for heavy-duty commercial vehicles, covering different usage scenarios. High Huan, CTO of the domestic commercial vehicle business unit of Contemporary Amperex Technology, stated that the electrification of heavy trucks has become an inevitable choice of the times, and Contemporary Amperex Technology has the responsibility and obligation to provide power support for this transformation.

With this product launch, Contemporary Amperex Technology has completed its last piece in the commercial vehicle field, achieving full coverage of commercial vehicle scenarios. Since the launch of the Tianxing brand in July, it has successively released batteries for the logistics field and public transportation field.

Specifically, Contemporary Amperex Technology has launched four commercial vehicle battery scenarios this time, including the ultra-fast charging version, long-life version, long-range version tailored for heavy trucks, and the high-strength version designed specifically for construction machinery.

The four products are targeted at different application scenarios, addressing key scenarios that have hindered the increase in the electrification rate of heavy trucks and construction machinery for a long time.

The fast charging version is capable of achieving 4C supercharging, charging 70% in 15 minutes, to meet the operating efficiency considerations for coal, steel, mining, bulk transportation, and soil mixing scenarios where quick recharging is necessary. The long-life version has an ultra-long life of 3 million kilometers over 15 years, nearly double the average life of industry batteries, and does not require battery replacement within the 8-year heavy truck life cycle; the long-range version has a large battery capacity of 1000 kWh and a range of 800 kilometers, meeting scenarios with a single-way distance of over 500 kilometers for express delivery and rapid transportation.

The high-strength version is designed for construction machinery working in harsh conditions such as mining areas and construction sites. Through innovative and precise structural design, the Tai Shan architecture is created to increase the volume utilization rate by 40%, while also meeting the IP68 waterproof standard, capable of direct water wash brushing.

In addition to the three-dimensional multi-faceted water cooling system, eve energy co.,ltd.'s commercial vehicle battery single pack can control the charging temperature difference within 5℃, ensuring stable and consistent battery performance.

Compared to the passenger vehicle market, commercial vehicles are more diverse and extreme in usage scenarios, making them more prone to performance instability issues in extreme environments over the long term. Commercial vehicles also emphasize the economic viability of the entire lifecycle, demanding a reduction in operational costs for batteries, which account for a higher proportion of the total vehicle cost, beyond just performance.

As a leading power battery company, contemporary amperex technology is well aware of this point. At the conference, Gao Huan repeatedly emphasized that the four batteries can reduce usage costs in different scenarios and bring economic benefits.

For example, Gao Huan stated that the long-life version can provide battery warranty coverage for the vehicle's entire lifecycle, avoiding the cost of replacing batteries, which can reach hundreds of thousands; compared to gasoline vehicles, it can save nearly 0.13 million yuan per year, totaling over 1 million in 8 years.

Breakthroughs in range, lifespan, charging efficiency, safety, and stability have led to further reductions in operational costs. The introduction of contemporary amperex technology's four commercial vehicle batteries will help boost the penetration rate of new energy in commercial vehicles.

According to the National New Energy Commercial Vehicle Market Information Joint Meeting data, in September of this year, the penetration rate of new energy in commercial vehicles has reached 24%, an increase of 10 percentage points from the same period last year. In the first 9 months of this year, the penetration rate of new energy in commercial vehicles was 18%, significantly higher than the 10.2% and 11% at the end of 2022 and 2023.

As expected, by the end of this year, China's penetration rate of new energy in commercial vehicles will exceed 20%, indicating that new energy commercial vehicles are passing a key milestone, transitioning from breakthrough penetration to rapid penetration.

As the large-scale elimination of National IV and below diesel heavy-duty trucks will come in 2025, the future new transportation demand and replacement demand for existing units will further drive the increase in sales of new energy heavy-duty trucks. It will be a crucial period for seizing market opportunities.

Comparing the development history of passenger vehicles, a penetration rate of approximately 20% was at the level of the passenger vehicle market in July-August 2021. With the rapid rise of independent brands, the market landscape of passenger vehicles has undergone significant changes.

The commercial vehicle market has also been overturned with the advancement of new energy transformation. In markets like heavy-duty trucks, the era of fuel-powered vehicles competed in terms of engines, transmissions, and axles. In the new energy era, the competition is focused on power batteries, drive motors, and electronic control systems, presenting opportunities for Chinese commercial vehicle manufacturers.

According to management of commercial vehicle manufacturers interviewed by Wall Street, the electrification of commercial vehicles, especially heavy-duty trucks, is rapidly increasing, showing the market opportunities and a window of reshaping the industry landscape. However, this current window of opportunity will not last long, probably only about 3 years.

Since the beginning of this year, including commercial vehicle brands under Geely such as Farizon Auto, and Lingzhi Auto under Wuling New Energy, all have been increasing their presence in the commercial vehicle market. Industry players are keen not to miss this rare window of opportunity.

According to QYResearch's data, the global new energy commercial vehicle market is expected to reach 162.404 billion US dollars in 2029, with a compound annual growth rate of 18.41% from 2023 to 2029. This will be another billion-dollar market with development potential outside the passenger vehicle market.

For Contemporary Amperex Technology, if it can leverage its own technological and product innovations to drive the increase of new energy penetration in commercial vehicles during the current window of opportunity, while maintaining its market share advantage, the commercial vehicle power battery market will become a significant growth pillar for its revenue. By then, the market will also see more possibilities for this leading battery company and reevaluate its value.

Throughout this process, Contemporary Amperex Technology must continue to sprint, innovate continuously, and maintain a lead over companies like EVE Energy, Rept Battero, and BYD to emerge victorious from the intense competition.