Reportedly, Electric vehicles with lithium iron phosphate (LFP) batteries from China have now started domestic sales. One of the finest examples is Tesla’s Model 3, the Standard Range Plus was confirmed to be equipped to have a Chinese CATL lithium iron phosphate battery. Also, some of its volumes are going to be introduced in August respectively. While the Model 3 Standard Range Plus model, the vehicle is now available for orders and the same is packed with a full CATL battery.
Meanwhile, the second electric vehicle that is equipped with CATL batteries is Kia Niro EV, sold domestically. Although, the Niro EV has a three-way battery. While the lithium iron phosphate battery is being first used in Tesla Model 3 respectively. Notably, the model was produced at the Fremont plant in the United States.
There’s also a prediction of many, that Tesla will introduce the Model 3, which was produced at the Gigafactory in Shanghai, China. Another fact of this is the free trade agreement (FTA) between South Korea and the United States.
Tesla’s reason for using lithium iron phosphate batteries
The primary reason why Tesla used lithium iron phosphate batteries in the US-manufactured Model 3 is certainly clear. And it is the increase in prices of raw materials that are being used such as nickel and cobalt. As Tesla already raised the cost of major electric vehicles multiple times this year. This price hike is being faced by Model 3, Model Y and Model S respectively. While the price of the Model 3 Standard Range Plus model is over 70 million won. Its fully autonomous driving would exceed 80 million won. Again, the lithium iron batteries which are known to be cheaper than the triometer have not effectively lowered the vehicle pricing.
Expected conflict with LG Energy Solutions
And with the introduction of the CATL lithium iron phosphate batteries in Korea. The same being initiates the conflict with LG Energy Solutions is also expected. As it also develops the same product. In earlier days, batteries will be supplied predominantly for energy storage, but with time they are also installed on Electric vehicles as well.
Additionally, if talking about CTP, then it is the decisive technology that used by CATL. It enable to provide batteries for Tesla Model 3 electric vehicles. On other side, in the ‘Cell-Module-Pack’ phase, it makes up an e-car battery. Whereby the module is removed and immediately turned into a pack. Noticeably, last year only, Hyundai Mobis signed a CTP technology licensing agreement with CATL.
The Model 3 Standard Range Plus produced at the Fremont plant in the United States is equipped with cylindrical batteries made by Panasonic in Japan. While in case of the Shanghai Gigafactory in China, LG Energy Solutions is supplying batteries to the Model 3, Model Y Long Range and Performance models.
