The electric mobility landscape is booming, a phenomenon that has greatly accelerated over the past ten years and driven largely by Chinese companies. The giant BYD, NIO and its intelligent vehicles, XPeng which offers extraordinary concepts, or CATL (Contemporary Amperex Technology Co., Limited), world leader in the production of lithium-ion batteries.
In a sector where competition is very fierce, the Middle Kingdom has just drawn its new weapon: a battery rail transport pilot programprecisely involving its two titans BYD and CATL. These behemoths, which already command 53.1% of the global battery market (36.7% for CATL and 16.4% for BYD over the first nine months of the year), are preparing to boost their supply chain.
China moves from bitumen to rail
The observation is clear: in 2023, China transported around 9.4 million tonnes of batteries by road, or more than 90% of the total volume. A method of delivery which however today shows its limitsboth in terms of capacity and operational costs.
To remedy this, three strategic rail corridors have just been inaugurated : two major arteries linking Guiyang and Yibin (Guizhou province) to Shanghai for CATL, and an axis linking Chongqing, a city located inland to the Gulf of Beibu (south of the country) for BYD. This gulf provides privileged access to the South China Sea and is a very important starting point for trade with Southeast Asian countries.
This immense transformation promises considerable benefits : increased transport capacity, moderate costs and less vulnerability to climatic hazards, as CATL highlights in its communication.
A strategy oiled like a locomotive
The technical preparation for this changeover is the subject very precise planning. CATL has increased its security tests, in particular “ thermal runaway ” And ” railway impact » on its specialized containers last June. Mandatory testing when transporting lithium-ion batteries due to risk of fire or explosion. For its part, BYD’s FinDreams Battery division has already been working since 2021 on issues specific to the transport of this type of goods.
CATL sees even further, since the company aims to connect these new tracks to the China-Europe Railway Express (CR Express), a freight train network that connects China to Europe, a fundamental pillar of the New Silk Road. Objective: conquer the European market where rail only represents 20% of battery transport, compared to 70% for road.
Western competitors, already well ahead of China in the race for electric vehicles, should therefore see this gap widen further. European or American companies will have to roll up their sleeves if they do not want to fall further behind and preserve their industrial sovereignty.
- China is evolving its battery transport logistics from road to rail, with three strategic corridors managed by CATL and BYD.
- This change will reduce costs and increase transport capacities.
- CATL is even preparing a connection to the China-Europe Railway Express network to conquer the European market.
