China's BYD already builds battery-powered buses in California and has a growing operation in China. Now, the company is turning its sights even more on the battery supply market and could be a potential challenger to Tesla and its Gigafactory in the next five years.

BYD wants to add six gigawatt-hours of battery production each year for at least the next three years and possibly even keep growing at that rate afterwards, according to Reuters. The company currently has 4 GWh of capacity worldwide but should have 10 by the end of the year. It also has a factory Brazil on the horizon and even more assembly in the US planned. If all goes to plan, the business could be building 34 GWh by the end of 2020, which is right in step with the Gigafactory's proposed cell output.

"We have demonstrated that BYD is capable of adding 6 GWh every year with strong market demand," company spokesperson Matthew Jurjevich told Reuters.

The battery industry is going through rapid advancement at the moment as plug-in and electric vehicles grow in popularity globally. It seems that output capacity is right on the cusp of huge gains with examples like boosts from nickel-metal-hydride and the possibility of the Nissan Leaf doubling its range with new tech. According to Reuters, BYD is currently the world's sixth-largest player in making the vital part for EVs, while Panasonic is at the top.

If BYD can get its expansion to happen on time, it could gain a real advantage. A local newspaper and union claim Tesla is experiencing construction delays at the Gigafactory but the electric car maker denies it.

Related Video:

Tesla Gigafactory Spending: So Far, $50 Million-Plus--And Much More To Come

Share This Photo X