Tesla Said to Launch New Model 3 in China with Increased Range, Lower Price: Report

The world’s largest battery supplier is set to supply a new battery configuration to Tesla’s flagship sedan, which could even make the electric vehicles (EVs) more affordable.

Tesla is planning to launch a China-built Model 3 unit using CATL’s M3P batteries, according to two sources familiar with the matter who reported to Sina Tech (via CnEVPost).

The Model 3 is expected to gain a range increase of around ten percent, according to those familiar.

Currently, Giga Shanghai’s Model 3 units come with CATL’s lithium iron phosphate (LFP) batteries offering 556 km (345 miles) to 675 km (419 miles). The new battery packs from CATL are expected to push the electric sedan’s ranges above 600 km (373 miles) and 700 km (435 miles).

Additionally, the CATL M3P batteries cost less than the current packs, meaning that the automaker could drop the prices of its Shanghai-made Model 3 and Y units.

CATL has been supplying Tesla’s Giga Shanghai with batteries since late last year, after it signed a contract with Tesla over batteries for as many as 800,000 vehicles.

In addition to its presence in China, CATL plans to build one factory in Europe and one in North America located in Mexico.

The battery manufacturer also supplies other EV manufacturers, and recently CATL signed a deal with BMW to start supplying battery cells in 2025.