Citing individuals familiar with the matter, it is reported that BYD has decided to phase out its pouch-style batteries due to concerns about durability and the risk of leaks. As a result, the company has started converting its production lines at its Shaanxi and Zhejiang factories to prismatic cells, while a third factory in Qinghai will continue making pouch cells for now. BYD plans to replace its pouch-style batteries with a prismatic battery called “Short Blade,” which uses stacked foils similar to the Blade Battery in its electric vehicles but is shorter in length. Hybrids accounted for a significant portion of BYD’s global sales in 2023, with 98% sold in China. There have been no public reports of battery leaks in BYD vehicles equipped with pouch cells, but leaks could be problematic as they could lead to fires. Other EV makers like Volkswagen and Tesla have also expressed concerns about pouch-type batteries in the past. BYD initiated a recall of over 60,000 Tang DM-i hybrid vehicles in 2022 due to a defect in the pouch-style battery that increased the risk of a thermal runaway.