Tesla plans to switch primarily to lithium, and the first batteries of suit are likely to be rolling out soon.
Tesla plans to begin rolling out Model 3 units with cobalt-free lithium iron phosphate (LFP) from its Shanghai factory, as reported by Reuters. While current iterations of the vehicle use nickel-manganese-cobalt (NMC) batteries, the planned switch is set to take place as soon as Thursday.
The price for a Model 3 in China is currently $39,900 (USD) or 271,550 yuan, after government subsidies. A switch to LFP batteries will also likely mean a price reduction to future Model 3s.
Tesla is launching cobalt free batteries in it’s model 3.
______ cobalt producers.
Long lithium iron phosphate batteries.
This is not financial advice.
— Andrew Redden (@androolloyd) September 30, 2020
Tesla’s move to lithium has been a hot topic lately, with the company building its own refinery in Texas, and working with Australia’s Piedmont Lithium. Many consumers may not have realized how quickly they would start seeing cars utilizing batteries produced with the chemical.
In August, Tesla sold over 11,000 vehicles in China, marking a major stake in the Chinese electric vehicle (EV) market. The Model 3 is the most popular Tesla in China, though the company is also building a new manufacturing space for its anticipated Model Y SUVs, which are set to deliver next year.
We can likely expect a steady stream of exciting new roll-outs like this from Tesla for the next several years, as EVs become the new norm for automobile transportation.