SHANGHAI, Oct 25 (SMM) –A weekly update on the trending stories from the New Energy sector.
1. Tesla said at its third quarter investor meeting on October 20 that it is planning to gradually replace the high-nickel ternary batteries in the standard range Model 3 and Model Y in the global market with lithium iron phosphate (LFP) batteries. The long range version will continue to use ternary batteries.
Tesla has favoured LFP for a long time. Last year, Tesla launched the LFP version of Model 3 and lowered its price to less than 250,000 yuan thanks to the cost advantage of LFP batteries, significantly boosting its sales. In July this year, it was reported that Tesla would introduce the standard range Model Y powered by LFP batteries. Tesla CEO Musk also publicly said on Twitter that he prefers LFP battery because it can be charged to 100%, while ternary battery can only be charged to 90%. SMM believes that the latest decision of Tesla is aimed at further reducing the manufacturing costs of vehicles, especially in the context of sharply increasing prices of various raw materials.
2. The spokesperson of the Ministry of Industry and Information Technology (MIIT) and the director of the Operation Monitoring and Coordination Bureau said at the press conference of the State Council Information Office on October 19 that the MIIT will further promote the recycling and use of new energy vehicle power batteries from the aspects of regulations, policies, technologies, and standards.
As the first batch of new energy vehicles are gradually approaching the end of their service life, the recycling of power batteries has gradually become a problem that needs to be solved as these batteries contain cobalt, lithium, nickel and other metals, as well as electrolytes and other flammable hazardous substances, which can severely pollute the environment. The recycling of motive power batteries will be carried out in the following ways: 1. accelerating the establishment of legislation for promoting the recycling of motive power batteries; 2. improving the recycling system; 3. strengthening technological innovation and solving the existing technical bottlenecks; 4. deepening pilot practice and demonstrations.