Chinese battery manufacturer CATL has unveiled a groundbreaking technology that enables electric vehicles to charge for 520 kilometers of range in just five minutes, a direct response to competitor BYD's recent advancements.

However, due to ongoing trade tensions and restrictions imposed by the U.S. government, American consumers may not benefit from these technological advancements in the near future.

In a significant move, CATL and Stellantis announced a joint investment of €4.1 billion to establish a battery factory in Zaragoza, Spain, with production expected to commence by the end of 2026.

Despite a 33% increase in first-quarter earnings to 14 billion yuan ($1.9 billion), CATL's shares have seen a decline of about 13% since January, reflecting broader market pressures.

In addition to lithium batteries, CATL is introducing sodium-ion batteries, which are considered safer and more cost-effective, potentially replacing up to half of the current lithium iron phosphate battery market.

The newly introduced Shenxing battery is notable for being the first lithium iron phosphate battery to achieve both an impressive 800 km range and a 12C peak charging rate, while also performing well in low temperatures down to -10°C.

Following the announcement of these advancements, CATL's shares rose by 2.6% on April 21, 2025, indicating positive market reception.

Overall, these developments underscore the rapid advancements in battery technology, which are crucial for the future of sustainable transportation and improving the user experience for electric vehicle owners.

As of late 2024, CATL's batteries powered approximately 17 million vehicles globally, representing one out of every three electric vehicles on the road.

Executives from CATL have discussed the ongoing battery price wars, emphasizing the importance of establishing high national standards to eliminate low-quality products from the market.

These sodium-ion batteries are designed to retain over 90% of their charge even at -40 degrees Celsius, making them ideal for cold weather applications.

The Shenxing battery will be integrated into over 67 new electric vehicle models this year, ensuring that energy density is maintained without compromising rapid charging capabilities.