(Yicai Global) Aug. 25 -- Chinese new energy vehicle startup Nio is planning to start mass-producing two emerging types of batteries, according to insiders.

Nio will develop lithium manganese iron phosphate batteries, which are more energy dense than lithium iron phosphate batteries, as well as 4680 batteries, which is a type of cylindrical battery that Tesla uses, LatePost reported yesterday, citing insiders.

The company will kick off small-scale production of LMFP cells to provide its sub-brand Alps with them, the report said. The budget brand should debut cars priced between CNY200,000 and CNY300,000 (from USD29,203 to USD43,791) by 2024. Such batteries are deemed to feature energy density that is from 15 percent to 20 percent higher than that of lithium iron phosphate batteries.

The company is trying to expand its expertise to cover the entire life cycle of manufacturing, charging and battery swap stations to make a profit at every step, per the report. However, automakers can only realize small-scale manufacturing and thus their costs are higher than those of dedicated battery manufacturers, it added.

William Li, founder and chairman, said in June that the electric carmaker had already established a battery team consisting of more than 400 employees. The plan is to debut an 800-voltage platform of battery packs in 2024, he said. The high-voltage platform will be for 4680 batteries that should be installed in Nio's vehicles that are developed based on its third-generation NT3.0 platform, the LatePost report said. Such batteries are known for their high mileage and cost advantage.

Nio began building an industrial park called Neo Park, which includes a battery plant with an annual capacity of 100 gigawatt-hours, in Hefei in eastern China in April 2021. Moreover, in May the company was reported to have plans for a battery research and development facility in Shanghai with an investment of CNY220 million (USD32.1 million). Construction should start from this month to October.

Editor: Emmi Laine, Xiao Yi