, Columnist
For Buffett-Backed BYD, Getting to the Top Spot Isn’t Easy
The EV giant is struggling to bring down the manufacturing costs of its powerpacks.
It’s all about the architecture.
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Backed by Warren Buffett’s Berkshire Hathaway Inc., China’s biggest electric-vehicle maker BYD Co. posted stellar first-half earnings on Monday. But it’s struggling with battery-production costs.
It isn’t just about raw materials or other components, about which many manufacturers are complaining. While the Shenzhen-based company noted in its release it has made adjustments to certain car models to deal with the fluctuating prices of raw materials such as lithium, nickel and cobalt, the tougher obstacle is the cost of making its high-tech powerpacks.