CATL and BYD share many similarities. They are both top-ranking battery makers in the world and their market value has grown dramatically due to the insatiable need of EVs. As of July 15, 2021, patents filed by these two battery manufacturers are also worth paying attention because a large quantity of patents with good quality bode well for a company’s future development.
The number of patents application and PCT (Patent Cooperation Treaty) application
The number of BYD’s lithium-ion battery patents application is roughly 4 times greater than that of CATL, respectively 748 and 184 items. Generally speaking, from 2010 to 2021, BYD prevailed over CATL every year in terms of the patents filed in lithium-ion batteries. Particularly in 2019, the former filed 136 patents and the latter only 9. In 2020, BYD had 38 patent applications, while CATL had 14. Possibly, CATL has been busy with shoring up its capacity.
The total value of BYD’s patents on lithium-ion batteries—around $128 million is twice as much as CATL’s. Most of their patents are valued below $30,000. They both chose China as the major country to file their patents application followed by the U.S. as the second ideal country. And 78% of BYD’s lithium-ion battery patents were related to invention, while the proportion for CATL 52% stood at 52%. And BYD’s patents in key areas were cited more often than its competitor.
In conclusion, BYD’s lithium-ion has edges in diversification, cooperation, quality improvement, and academic value. CATL is more competitive in the scale and market expansion. Patents indicate a company’s progress on an innovative solution for technology barriers. In 2021, CATL’s batteries still empowered 52.1% of new EVs, and BYD accounted for 16.2% market share. CATL faces growing pressure from domestic and overseas rivals. To keep its momentum going, it has to come up with more cutting-edge battery technologies.