Chinese electric vehicle maker BYD is poised to surpass Tesla in battery electric vehicle (BEV) sales this year, according to a Counterpoint Research report. This marks a significant shift in the global EV market.
In related news, another Chinese battery maker shocked the industry with its new lithium battery pack that has 1.5 million km range.
BYD Surges Ahead in Global BEV Sales
In the second quarter, BYD’s BEV sales surged nearly 21% year-on-year to 426,039 units. Meanwhile, Tesla’s deliveries dropped 4.8% to 443,956 vehicles, according to CNBC’s calculations.
Last year, BYD’s total production, including both battery-only and hybrid cars, exceeded 3 million units. As such, the Chinese EV manufacturer outpaced Tesla’s 1.84 million cars for the second consecutive year.
BYD produced 1.6 million battery-only cars and 1.4 million hybrids, leaving Tesla as the leader in BEV production. But BYD had already overtaken Tesla in Q4 2023 performance as seen below.

Despite losing the top EV vendor spot to Tesla in the first quarter, BYD continues to lead in China, which remains a dominant force in the BEV market.
Global BEV sales are expected to reach 10 million at the end of 2024. This is supported by efforts to enhance cost-efficiency and affordability of EVs and EV batteries, as the decline of internal combustion engine (ICE) vehicles continues.
- By 2030, Chinese BEV sales are projected to surpass the combined sales of North America and Europe.
Counterpoint estimates China’s BEV sales to be 4x that of North America’s in 2024. The report further predicts China will maintain more than 50% of the global BEV market share until 2027.
However, the European Union recently announced additional tariffs on EVs imported from China to address the potential threat to the EU industry.
Geopolitical Moves Shaping the Future of EVs
This EU decision follows an extensive 8-month investigation revealing that Chinese EV manufacturers benefit significantly from government subsidies, enabling them to undercut European competitors on pricing and capture a substantial market share within Europe.
BYD and other Chinese EV companies will be heavily impacted by the tariffs.
BYD will face a 17.4% tariff, Geely an extra 20%, and SAIC the highest at 38.1%. This is on top of the standard 10% duty on imported EVs. These provisional tariffs will take effect from July 4 if negotiations with Chinese authorities do not yield a resolution.
An expert noted that these tariffs aim to level the playing field for European EV manufacturers. They might push Chinese automakers toward emerging markets such as the Middle East, Africa, Latin America, Southeast Asia, and Australia.
In contrast to the US approach of imposing 100% tariffs to block Chinese EV imports entirely, the EU seeks a balanced approach that maintains EV affordability while addressing subsidy-driven market distortions.
Looking forward, Chinese automakers may explore local production in Europe to mitigate tariff impacts, reflecting efforts to adapt to evolving trade dynamics in the global automotive sector.
Amid these geopolitical tensions among major EV-producing regions, the world’s largest EV battery maker, Contemporary Amperex Technology Co. (CATL) continues to innovate and produce the most advanced battery for sustainable mobility.
Beating Range Anxiety for Zero-Emission Vehicles
Chinese battery makers, led by CATL and BYD, expanded rapidly last year, capturing over two-thirds of the global EV battery capacity. Their batteries are already integrated into EVs produced by Tesla, Ford, BMW, Toyota, Mercedes-Benz, Kia, and several other major automakers.

Most notably, CATL has introduced a revolutionary electric vehicle (EV) battery capable of powering cars for 1.5 million kilometers (over 930,000 miles) with zero degradation.
CATL’s new lithium battery technology marks a significant milestone in EV innovation. It promises a minimal decrease in range over its lifespan, offering high-quality and reliable performance that mitigates range anxiety.
The battery is covered by a warranty ensuring less than 10% degradation over the first 1.5 million kilometers or 15 years, whichever comes first, utilizing CATL’s patented M3P chemistry. This achievement positions CATL as a leader in extending EV autonomy and durability.
The lithium-metal phosphate battery can endure over 3,000 cycles, supported by advancements in molecule stability, heat management, and battery management systems. Manufactured with modern techniques, these batteries could transform the sustainability and cost-effectiveness of long-distance EV driving.

CATL’s new lithium-ion battery technology offers several key advantages over traditional batteries, most notably extending lifespan potentially for centuries. This breakthrough is expected to fuel the continued growth of EVs due to its exceptional performance.
Looking ahead, EVs equipped with these batteries could feasibly travel over 1 million miles without needing a battery replacement. This capability represents a significant advancement in EV durability and reliability, promising to reshape long-term vehicle ownership and sustainability.
The rise of BYD and the challenges faced by Tesla reflect a dynamic shift in the global electric vehicle market. As geopolitical tensions influence trade policies, innovations in lithium battery technology continue to redefine the future of sustainable mobility.
- Lithium Company Spotlight: The Fastest Developing North American Lithium Junior
The post EV Wars and Breakthroughs: BYD to Overtake Tesla, CATL’s New Battery With 1.5M KM Range appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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