China’s electric vehicle market is pushing the boundaries of thermal and battery system integration. In parallel, Chinese companies are leading development of new solutions such as natural refrigerant thermal systems. This progress isn't just about innovation - it’s about strategic simplification and optimization. Rapid iterations and high volume are driving costs lower while EV range and charging time are improving.
What’s driving these advancements? A key to improving vehicle systems is working from first principles to eliminate redundancies, materials, components, and sub-functions. Chinese OEMs are leading the way by rethinking traditional component functions and deploying integrated solutions that set global benchmarks. This hardware and software integration will continue for the foreseeable future.
The chart below shows cost breakdowns for 18 Chinese BEVs. Maximum system integration is being deployed for higher performance EVs. Complex high-performance designs can be simplified to reduce or eliminate components and cost. Low-cost EVs have lower absolute performance and put an emphasis on simpler designs.
Chinese OEMs and suppliers have developed integrated thermal and battery pack solutions for plug-in hybrid (PHEV), extended range (EREV), and battery (BEV) electric vehicles. BYD is a prime example, consistently raising the value bar with integrated systems. It is imperative that global companies improve battery pack and thermal system designs to remain competitive with rapid developments across China.
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