Tesla shifting to cheaper battery chemistry tried in China


Tesla is looking to adopt a different, more affordable battery technology as supplies of raw materials currently used – nickel and cobalt – faced supply and safety issues. — Bloomberg

Tesla Inc. said it’s shifting to cheaper lithium-iron-phosphate batteries globally, a move away from the chemistry used to power most electric cars as prices for key materials soar.

The switch to LFP batteries will apply to Tesla’s standard-range vehicles, the company said in its third-quarter earnings release, confirming a strategy flagged last year to use the budget components to deliver lower-cost models.

Most of the auto industry relies on nickel and cobalt in lithium-ion batteries to boost electric car performance. Yet supplies of both materials are constrained, and ethical issues have long dogged cobalt mines in the Democratic Republic of the Congo, the top supplier.

Nickel, which helps provide power and range, is also prone to fire, a risk the industry is spending billions to control. Higher prices of nickel are currently having an impact on battery cells, according to Tesla’s Chief Financial Officer Zach Kirkhorn. "Some of those costs have been flowing through to us,” he said on an earnings call. "It’s not a substantial amount of cost, but it’s not small.”

Tesla has been using LFP batteries in China supplied by Contemporary Amperex Technology Co., the world’s largest battery maker. Though the batteries, which are cheaper and more stable than alternatives, have in the past lacked the energy density – a key factor for electric cars – that’s quickly changing.

Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Tech

Tesla increases wages for staff at German gigafactory by 4%
Apple explores push into smart glasses with ‘Atlas’ user study
Japan's Kioxia sees flash memory demand almost tripling by 2028
Hacker gets into woman’s email, changes every password, tries to make purchases
Foxconn says Oct revenue +8.59% y/y, Q4 outlook good
Want to help a friend find love? Give a PowerPoint presentation
Can an Apple�Watch get AFib patients off bloodthinners?
South Korea fines Meta about $15 million over collection of user data
Ehailing service Bolt says it’s launching in Malaysia soon, already licensed by Apad
French IT firm Atos agrees to sell Worldgrid unit to Alten

Others Also Read