Summary
- Two top-selling electric cars in the early days of the electric vehicle era were the Tesla Model S and the BYD e6
- The BYD e6 had a lower energy density lithium-iron-phosphate battery compared to the Tesla Model S’ nickel-cobalt-aluminum battery
- Despite initial criticisms, the LFP battery chemistry used in the BYD e6 improved over time and became cheaper
- Tesla is now looking to produce its own LFP batteries or LFP cathodes in-house as seen from a recent job listing
- The battery industry, including Tesla, is moving towards LFP batteries with a focus on developing low-cost options for electric vehicles
Article
In the early days of the modern electric vehicle era, the Tesla Model S and the BYD e6 were top-selling electric cars. The BYD e6, although chunky and with limited acceleration, was popular for taxis due to its range and affordability. One core difference between the two cars was their battery chemistries, with the Model S using a high-energy-density nickel-cobalt-aluminum battery and the BYD e6 using a low-energy-density lithium-iron-phosphate battery. Despite initial skepticism towards LFP batteries, they became cheaper and more energy-dense over time, leading even Tesla to use them in its cheaper models.
Tesla is now looking to produce its own LFP batteries in-house, as indicated by a job listing for a Senior Cell Materials Engineer for an LFP cathode program. The job description includes spearheading validation efforts, developing new tests, and interpreting electrochemical data. This move aligns with the battery industry’s increasing focus on LFP batteries and Tesla’s ongoing shift towards utilizing them. The company is also set to collaborate with Chinese manufacturer CATL to develop low-cost batteries for a large-volume EV, with plans to build in-house LFP batteries for its Megapack using machinery from CATL.
With the Inflation Reduction Act supporting reshoring of manufacturing jobs in the US, especially in the production of EV batteries and components, it is likely that Tesla will expand its battery component and LFP battery production plans in the US in the coming years. This shift towards local production of battery components aligns with the broader trend of reshoring manufacturing jobs to increase domestic production and reduce reliance on imports. By building out battery component and LFP battery production in the US, Tesla can take advantage of government incentives and support for domestic manufacturing.
As the battery industry continues to evolve and focus on developing more affordable and efficient battery technologies, the shift towards LFP batteries appears to be gaining momentum. Tesla’s decision to start producing its own LFP batteries in-house is a strategic move to secure a stable supply chain and reduce costs. By collaborating with CATL and investing in LFP battery production, Tesla is positioning itself to meet the growing demand for electric vehicles while also leveraging cost-effective and efficient battery technologies. Overall, this development reflects the ongoing evolution and innovation in the electric vehicle and battery industries.
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