Why Tesla Consider to Buy LFP Batteries from CATL?

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Reuters reported that Tesla, the leader of new energy vehicles, is discussing with CATL (Contemporary Amperex Technology Co Ltd) about the use of cobalt-free batteries in Chinese factories. If it is confirmed, this also means that LFP (lithium iron phosphate) batteries will enter the Tesla production line for the first time, which is expected to further reduce production costs and increase sales of related models in China.


Why did Tesla consider to take LFP (lithium iron phosphate) batteries in China?

Why Tesla Consider to Buy LFP Batteries from CATL?

Compared with other battery type, the biggest advantages of lithium iron phosphate batteries are safety, low cost, long life, and it can be deeply discharged, the discharge capacity can reach more than 95% of the conceptual discharge capacity.

The main reason why Tesla considers LFP (lithium iron phosphate) battery is to reduce costs. Battery costs deal with an large proportion of the entire vehicle. There is an objective need to “reduce costs.” By manufacturing “quality and cheap” smart electric vehicles, it really promotes the development of the industry and thus brings about an energy revolution.

There is an objective request to “reduce costs” if Tesla wants to achieve mass production, it will finally push the development of the industry and then bring about an energy revolution by manufacturing “quality and cheap” smart electric vehicles.

Tesla is not going to use the traditional lithium iron phosphate batteries this time, but to purchase “cobalt-free cells” from CATL.

What exactly is the “cobalt-free battery” from CATL?

Why Tesla Consider to Buy LFP Batteries from CATL?
CTP battery pack debuted by SVOLT (A subsidiary of GWM) in Frankfurt

Simply put, it is lithium iron phosphate battery, but it uses the CTP (Cell To Pack) technology from CATL. CTP is a technology that directly integrates cells into packs without modules. In 2019, CATL took the lead in accepting the new CTP technology for battery packing without modules. In terms of cost, the volume utilization rate of CTP battery packs has increased by 15% -20%, the number of parts has been reduced by 40%, and the production efficiency has been increased by 50%. After being put into application, the manufacturing cost of power batteries will be greatly decreased.

Also Read: First Equipped with BYD Han, Blade Battery or Become Industry’s Upstart

Compared to the new technology of CATL, BYD is not to be outshined. “Blade battery” is the name for BYD’s next-generation lithium iron phosphate battery. Mr Ouyang Minggao, an academician of the Chinese Academy of Sciences, once suggested BYD’s “blade battery” and CATL’s CTP battery solutions as the “most beautiful” battery technology innovation in 2019.