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 or renew your subscriptions to win prizes worth up to RM68,000!

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

Factbox-Who are bankrupt Northvolt's creditors?
UK should use new powers to probe Apple-Google mobile browser duopoly, report says
EU regulators scrap probe into Apple's e-book rules after complaint was withdrawn
Hyundai recalls over 145,000 electrified US vehicles on loss of drive power
'World of Warcraft' still going strong as it celebrates 20 years
Northvolt CEO steps down, saying group needs up to $1.2 billion
Bitcoin at record highs, sets sights on $100,000
Ukraine urges gamers not to enter Chernobyl exclusion zone
Kioxia's market value set at $4.9 billion in IPO
Apple readies more conversational Siri in bid to catch up in AI

Others Also Read