The stand of battery giant Contemporary Amperex Technology Co Ltd during a trade fair in Shanghai. (PHOTO / CHINA DAILY)

Battery giant Contemporary Amperex Technology Co Ltd said on Wednesday that its new super battery is ready for mass production, which according to industry experts could be a game-changer for automakers as well as the electric vehicle industry.

The Chinese battery supplier, which has leading carmakers like Tesla, BMW and Daimler as clients, told China Daily that the new battery is capable of powering an electric vehicle for 2 million kilometers and will last 16 years. Current EV batteries can run for 250,000 kilometers and have a life span of eight years at maximum.

"The battery is ready for mass production and will greatly reduce the costs," the company said.

CATL shares rose by 1.77 percent on Wednesday to a two-month high of 156.68 yuan (US$22.2) on the Shenzhen bourse.

The battery is ready for mass production and will greatly reduce the costs

Contemporary Amperex Technology Co Ltd

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The firm said that the new technology relies on innovations to slow down the capacity decay rate and enable batteries to store more energy for longer periods.

Experts said that the million-mile batteries will provide a key boost to the sales of electric vehicles as battery life span has been one of the main reasons deterring consumers from purchasing EVs.

"It would be game-changing if EVs become the main source of transport in the future. CATL's supply chain firms and related automakers like Tesla will embrace continuous opportunities," said Deng Xue, chief auto analyst from TF Securities.

Though CATL did not disclose any supply contracts, it has signed a two-year deal with Tesla to supply its Model 3 batteries. The US firm had stated earlier that it was planning a million-mile battery.

The COVID-19 pandemic has suppressed the automotive market with Bloomberg New Energy Finance anticipating that global EV sales will fall by 18 percent this year to 1.7 million units.

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During the first quarter, CATL posted a revenue of 9.031 billion yuan, down 9.53 percent on a yearly basis, mainly due to the COVID-19 epidemic.

"The epidemic may have a lasting effect this year, but won't be a major factor next year," said CATL Chairman Zeng Yuqun in an interview with Bloomberg, adding that the company has great confidence for the long run.

The remarks also echo BNEF's prediction that battery-powered vehicles will recover to account for 8.1 percent of all vehicle sales next year in China.