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Tesla’s iron-based battery program paves the way for Chinese in the United States

Tesla I want to shift to cheaper ones battery for that Electric car But first, we need to understand how to overcome political tensions in order for our Chinese partners to manufacture iron-based batteries near our US factories.

The world’s two largest economies have yet to resolve disputes over tariffs, intellectual property rights, and China’s invasion of Taiwan’s air defense identification zone.When Chinese Drastic regulatory crackdowns, primarily in the technology sector, could pose yet another hurdle.

China adopted this technology early to manufacture 95% of the world’s lithium iron phosphate (LFP) batteries, but major patents soon expired and Tesla puts LFP batteries in the world’s standard range of vehicles. Adopted, battery production factory.

“Our goal is to localize all major parts of the continent’s vehicles,” Drew Barino, senior vice president of powertrain and energy engineering at Tesla, said in a statement Wednesday. Tesla is building factories in the United States and Germany.

“We work internally with our suppliers to reach that goal, not only at the final assembly level, but as upstream as possible.”

Tesla is currently using some of the Chinese CATL LFP batteries made in China Model 3 And the Model Ys, and in the United States, the entry-level Model 3 sedan with LFP is now on sale.

The company did not respond to requests for comment.

LFP technology is considered cheaper and safer than nickel-based batteries, but it doesn’t have the same energy density as nickel-based batteries, so you can move your car farther on a single charge.

The technology is attracting attention from EV makers, and Reuters is in early negotiations with CATL and BYD in China in June to obtain an LFP battery for a planned electric vehicle. He reported that he wanted to build a factory in the United States.

However, people said at the time that CATL was reluctant to build factories in the country because of political tensions and cost concerns between Washington and Beijing.

“We can’t underestimate the entire geopolitical side,” Sanjiv Malhotra, founder of battery startup Sparkz and former US Department of Energy executive, told Reuters.

“Our customers don’t want to fall into this political predicament,” said a U.S. startup considering setting up an LFP production line in the U.S. to challenge China’s domination. rice field.

According to Ross Capital analyst Craig Irwin, CATL is probably better manufactured in China, where the world’s lowest cost materials are available.

“US facilities will need a better US supply chain to be similar to the low costs available in China.”

“China’s pride and joy”

President Joe Biden Prioritized supporting the deployment of electric vehicles for combat Climate changeHowever, battery constraints could remain a major hurdle to his ambitious plans.

China is the world’s largest EV market and dominates the supply chain for the manufacture of lithium-ion batteries, including the processing of minerals and raw materials.

Taylor Organ, Chief Executive Officer of Snowbull Capital, said:

Electric Last Mile Solutions Inc (ELMS), a commercial electric vehicle company that currently imports CATL battery packs, is discussing the possibility of procuring batteries at CATL’s potential US plant.

“We plan to invest abroad based on factors such as market demand, investment environment, supply chain, talent and costs,” CATL said.

A BYD spokeswoman said the company has a battery packing production facility in the United States, but does not currently manufacture cells in the United States.

Last year, CEO Elon Musk Tesla said it would use an LFP battery for the Model 3 made in China, and said the move would free up semi-battery capacity. truck Other vehicles that require a high density long range battery based on nickel.

Since then, Musk has promised to use this technology in more vehicles and energy storage systems. The Houston Energy Project uses LFP batteries.

The company is facing higher costs, primarily as cobalt prices have risen by about 70%, nickel by about 20% and aluminum by about 50% so far this year. Tesla uses these materials to make batteries.

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Tesla’s iron-based battery program paves the way for Chinese in the United States

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