Tesla Replaces Lithium Iron Phosphate Batteries?

Recently, Tesla CEO Elon Musk said on Twitter that due to the lack of nickel, the supply of ternary lithium batteries is difficult, and all standard battery life versions of Tesla will switch to lithium iron phosphate batteries.

For a long time, Tesla’s only battery suppliers, Panasonic and LG Chem, only provided ternary lithium battery solutions. Until last year, they cooperated with CATL to provide lithium iron phosphate batteries for the domestic Model 3 standard battery life version. Compared with ternary lithium batteries, lithium iron phosphate batteries are less safe and more susceptible to temperature, but the lower cost allows car companies to lower the price to benefit consumers.

For a long time, Tesla's only battery suppliers, Panasonic and LG Chem, only provided ternary lithium battery solutions. Until last year, they cooperated with CATL to provide lithium iron phosphate batteries for the domestic Model 3 standard battery life version. Compared with ternary lithium batteries, lithium iron phosphate batteries are less safe and more susceptible to temperature, but the lower cost allows car companies to lower the price to benefit consumers.

In 2020, the installed capacity of lithium iron phosphate batteries far exceeds that of ternary lithium batteries, and will maintain rapid growth. Last year, the standard battery life version of Model 3 equipped with lithium iron phosphate batteries produced by Tesla’s Shanghai plant was exported to many European countries. Model Y may usher in another price cut. According to rumors, the nickel shortage may last as long as five years, and Tesla may not be the only electric car company affected by the supply of ternary lithium batteries.