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Tesla plans shift to LFP cells for Model 3 and Model Y, likely with US production

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After switching to lithium iron phosphate (LFP) battery cells for Chinese language-market Mannequin 3 and Mannequin Y electrical vehicles, Tesla plans to develop use of the cells to international markets—with native manufacturing.

Tesla stated in its third-quarter earnings report launched Wednesday that LFP chemistry shall be utilized in all standard-range autos globally. That may doubtless embody LFP cell manufacturing in the USA.

Reuters reported that Tesla senior VP for powertrain and power engineering, Drew Baglino, mentioned localizing manufacturing of all key automobile elements in the course of the firm’s latest earnings name. 

Tesla starts delivery of Chinese-made Model 3 sedans on December 30, 2019

Tesla begins supply of Chinese language-made Mannequin 3 sedans on December 30, 2019

Chinese language battery suppliers and automobile producers had been early adopters of LFP chemistry. China presently makes 95% of the world’s LFP batteries, however key patents are set to run out, Reuters famous, probably giving Tesla an avenue for large-scale use of LFP cells.

Tesla introduced a shift of the Mannequin 3 to LFP final 12 months, to release extra energy-dense cells the place they had been wanted, for the Semi and Cybertruck, for example. It is also within the technique of shifting the bottom Mannequin Y to LFP cells.

For U.S. manufacturing, Tesla would doubtless want to show to Chinese language corporations BYD or CATL for LFP cells. BYD has a footprint within the U.S., however primarily for bus meeting. CATL has indicated curiosity, however plans have not moved ahead.

Tesla Model Y

Tesla Mannequin Y

Tesla has been topping lists because the most-American EV, and its fashions are amongst these with essentially the most made-in-America content material. Shifting to Chinese language-made batteries as a substitute of these from the Nevada Gigafactory would complicate logistics and that fame. It might even be politically tough, resulting from present tensions between the U.S. and China, Reuters famous.

Concurrently, Tesla is aiming to consolidate its battery provide chain. CEO Elon Musk has famous that Tesla has too many battery chemistries proper now. And forward of the arrival of the brand new 4680 format as effectively, he known as it a “Baskin-Robbins of batteries” state of affairs earlier this 12 months.

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