Energy Insider: BYD Crushes Rivals in Global EV Sales, Oil Producing Ship That Captures Its Own Emissions Unveiled

[para. 1] In this week's Caixin energy wrap, significant developments in China's climate and energy sectors are highlighted, ranging from global market performances to innovative technological achievements. Notable topics include BYD maintaining its lead in global electric vehicle (EV) sales, the launch of an emissions-capturing oil-producing vessel, China's soaring electricity demand forecast, and Tesla's new Shanghai Megapack factory coming online.

[para. 2] BYD Co. Ltd., a prominent player in the global EV market, has outpaced its competitor Tesla Inc., holding the position of the world's top-selling EV maker, according to SNE Research from South Korea. BYD experienced a 43.4% year-on-year increase, selling over 4.1 million vehicles in 2024, whereas Tesla's sales fell slightly by 1.1% to below 1.8 million vehicles. Zhejiang Geely Holding Group Co. Ltd. made significant strides, surpassing SAIC Motor Corp. Ltd. and Volkswagen AG, with a 59.8% increase in sales.

[para. 3] The robust growth of Chinese EV producers, highlighted by SNE Research, reflects China's strong domestic market performance, contrasting with slower growth in Europe and North America. However, China’s EV exporters face challenges as Western nations implement protectionist measures. Adjustments to China's "export-driven growth strategy" might be necessary due to tariffs from the EU and the U.S.

[para. 4] A pioneering oil-producing vessel capable of capturing its own carbon emissions has been introduced by Cosco Shipping Heavy Industry off Shanghai's coast. This vessel, equipped to produce 120,000 barrels of crude oil daily, is unique globally for its capability to capture and store emissions during production and navigation. This innovation comes as the shipping industry faces mounting pressure to reduce its carbon footprint, contributing significantly to global emissions.

[para. 5] Increased carbon emissions from shipping in the EU since 2015, barring the pandemic year of 2020, as noted by the European Maritime Transport Environmental Report, underscore the urgency for emissions cuts in the industry.

[para. 6] China's electricity demand, accounting for over half of the global total in 2024, is predicted to continue rising through 2027, with a growth rate of about 6% per year compared to the global average of 4%, according to the International Energy Agency (IEA). Since 2020, China's electricity demand growth has consistently outpaced its economic growth, driven by industrial consumption and rapid renewable energy manufacturing expansion. The IEA also identifies the rising usage of air conditioning, EVs, and data centers as contributing factors.

[para. 7] Tesla's Shanghai Megapack factory, located in the Lin-gang Special Area, has commenced production following a short trial. Completed in just seven months, the factory operates as Tesla's first Megapack battery facility outside the U.S., adding to its existing EV assembly plant in Shanghai. With an annual capacity of 10,000 Megapack units, each storing around 3.9 megawatt-hours of energy, the plant will serve both domestic and international markets.

[para. 8] The launch of the Shanghai Megapack plant attracts significant attention regarding its potential "catfish effect" in stimulating the industry, similar to Tesla's impact on the local EV market. The domestic energy storage sector already features intense competition, with companies like Contemporary Amperex Technology, BYD, and Huawei expanding production of energy storage devices and systems in recent years.