Kandi Technologies has a new battery. What about the quotes?

This week, Kandi Technologies Group, Inc. (KNDI) introduced a new battery with in-demand parameters. Kandi Technologies Group, Inc. shares reacted to this news with solid growth, and later with the same fall. 

Can a new development become a driver for Kandi? Technologies have introduced a 18650 battery cell, but not lithium-ion, but lithium-iron-phosphate (LFP or LiFePO4). LFP has some critical advantages: lower fire hazard and cost, better performance at low temperatures, long service life, and the ability to store up to 15 years. In addition, they have a more stable voltage, which requires less complex charge and discharge current control systems. 

LFP has a lot of advantages, but so far, they have not been used massively in consumer electronics. The reason is that the capacity is smaller than that of lithium-ion batteries. That is, the LFP battery will be heavier with equal capability. Kandi Technologies claims that its cell has an energy density 22% higher than other LFPs, comparable to high-current lithium-ion 18650 cells. 

At the same time, the company is confident that it will produce such cells on an industrial scale. The news has encouraged investors, but there is no certainty yet that Kandi will negotiate large deliveries with potential customers. As a result, the shares adjusted. Eighteen thousand six hundred fifty cells are widely used everywhere: from flashlights to electric vehicles and industrial power storage. 

According to a set of parameters, the new LFP 18650 cells from Kandi are suitable for consumer equipment, for example, electric scooters and home batteries. In addition, LFP has a lower risk of fires and breakdowns due to improper storage and frost than lithium-ion 18650. These qualities can attract the attention of equipment manufacturers.