Tesla said at a third-quarter investor exchange meeting on Wednesday (20th) that Tesla is switching all standard extended-flight electric cars to lithium iron phosphate (LFP) batteries around the world. The move may be a way for Tesla, who has been criticized for repeatedly raising prices, to boost profit margins without having to raise car prices.
Tesla has previously purchased LFP batteries from Ningde Times. At present, Tesla has produced cars equipped with lithium iron phosphate batteries at the Shanghai factory, which will be sold in China, the Asia-Pacific region and Europe.
Lithium iron phosphate battery and ternary battery are two major technical routes in the field of power battery. The former has good safety performance and low cost, while the latter has the advantages of high energy density and strong battery life.
At present, electric vehicle manufacturers usually use ternary batteries such as nickel-cobalt-aluminum battery and nickel-manganese-cobalt battery in passenger cars, but the cobalt element used is one of the most expensive metals in power batteries.
In September, Tesla asked subscribers of Model 3 in the United States if they would accept LFP batteries instead of the NCA batteries (lithium-nickel-cobalt-aluminum oxide batteries) previously used in North American Model 3 cars.
"LFP has both a positive side and a negative side," said Sam Abuelsamid, chief analyst at Guidehouse Insights. "it's much cheaper and doesn't require any nickel or cobalt. It is also more stable and safer. " However, the disadvantage is that the battery has a lower energy density, which means that batteries of the same weight provide lower mileage. Abuelsamid says cold weather also has a greater impact on them.
Abuelsamid believes that Tesla's change "may be a smart idea, because they will not cut prices to increase net profit."
Other automakers, such as Ford and Volkswagen, have also expressed interest in changing battery chemistry in low-cost models, Abuelsamid said. He says this is particularly attractive for business vehicles that don't need to travel hundreds of miles, especially delivery vans.
Snow Bull Capital CEO Taylor Augen (Taylor Ogan) has long been bullish on Tesla, telling the media, "LFP batteries are cheaper and safer." With this chemical, you can charge your car battery up to 100% without worrying about long-term battery degradation. "
"in addition, these batteries are easy to recycle. Morally speaking, it is easier to purchase raw materials for these products. " Augen said that
At present, the two largest LFP battery manufacturers in the world are Ningde Times and BYD, and Tesla is already purchasing batteries from Ningde Times.
Tesla did not provide more details about the decision, but told investors that Tesla was "turning to (LFP) chemistry for lithium iron phosphate batteries around the world."
