Tesla will use lithium iron phosphate batteries in all standard battery life models

If you are tired of Tesla's frequent model price changes, for fear of not catching the last train before the price increase, then their next cost control measures may make the price effective in the longer term.

Tesla announced at its investor conference this quarter that it will change the battery type of the standard battery life model from ternary lithium to lithium iron phosphate, but the long-range battery will continue to be ternary lithium battery. This change is mainly for Model3/Y models.

It is reported that 95% of the lithium iron phosphate batteries used by Tesla are produced in China. At present, Tesla vehicles equipped with lithium iron phosphate batteries have been produced from the Shanghai Super Factory and sold to China, some Asian and European countries, and Tesla will continue to expand the use of lithium iron phosphate batteries this time.

Since lithium iron phosphate batteries do not use cobalt or nickel, they have obvious price advantages. But is this just for lower cost? Not necessarily, some experts also pointed out that lithium iron phosphate batteries will have higher chemical stability and safety than ternary lithium batteries, and have a longer service life and better recyclability in response to this decision.

There are also several shortcomings that cannot be easily ignored. The first is the lower density of electric energy storage, and the shorter cruising range in the same volume, which is destined to be unsuitable for long-range models under a certain weight and volume; secondly, the functionality of the lithium iron phosphate battery is affected. The temperature has a greater impact, and the experience in cold areas should be worse.

From a more macro perspective, this may be a new profit growth point for the two domestic lithium iron phosphate battery giants of BYD and CATL, and it will also provide more shares and opportunities for the entire lithium iron phosphate battery market. .