Tesla is changing its standard battery life to replace its previous three-way lithium battery with a lithium-phosphate (LFP) battery, while the long-range model will continue to use a three-way lithium battery, according to foreign media CNBC. Tesla already produces cars that use lithium iron phosphate batteries at its super plant in Shanghai and sells them in China, Asia Pacific and Europe.
In September, Tesla asked U.S. Model 3 subscribers if they could accept a Model 3 that uses lithium-ion phosphate batteries, rather than the three-way lithium-ion battery models Tesla previously sold in North America.
Sam Abuelsamid, chief analyst at Guidehouse Insights, an AMERICAN energy consultancy, says lithium iron phosphate batteries are also safer because of their chemically stable properties, but an important drawback is that they also have a lower energy storage density, meaning they have less battery life at the same weight than other types of batteries, and the cold climate has a greater impact on lithium phosphate batteries than on other materials.
"Lithium iron phosphate batteries are cheaper because they don't need nickel or cobalt," Sam Abuelsamid said, "but Tesla won't cut prices on new versions of electric cars, so the profit margins will naturally increase."
Taylor Ogan, chief executive of Snow Bull Capital, commented: "Lithium iron phosphate batteries are cheaper and safer. Using this chemical, owners can charge the vehicle's battery to 100% without worrying about the aging of the battery, which is easy to recycle. It is also easy to source raw materials for the manufacture of such batteries, which is why lithium iron phosphate batteries are basically made entirely in China and are suitable for all new energy vehicles that meet the standards. ”
Roskill, a materials researcher and consultant, says this type of battery is widely promoted in China. At the same time, Tesla points out that about 95% of lithium iron phosphate batteries are manufactured in China. AI Financial News learned that Tesla has previously announced that the two have signed a lithium battery procurement agreement with China's iron phosphate lithium battery leader Ningde Times.
At Wednesday's earnings analyst meeting, Tesla gave no further details, saying only that it was moving globally to lithium-ion phosphate batteries. Tesla did not respond. (| AI Finance News Agency Crossing)