Elon Musk indicates that Tesla may move more electric cars to LFP battery cells due to concerns about the long-term availability of nickel stock.
Last year, Tesla CEO Elon Musk mentioned that he believes the energy density of iron phosphate (LFP) batteries has improved enough that it now makes sense to use the cheaper and cobalt-free batteries in his lower vehicles.
Furthermore, the CEO indicated that the use of LFP batteries also frees up more battery delivery of lithium-ion chemical cells by using nickel cathode for Tesla’s other vehicle applications.
In October 2020, Tesla began manufacturing the Model 3 Standard Range Plus from Gigafactory Shanghai with LFP battery cells.
The move was important because Tesla also started exporting this new version of the Model 3 outside of China for the first time.
This new Model 3 Standard Range Plus with LFP batteries made in China has finally become Tesla’s new base model in Europe and other markets.
In the US, Tesla is still manufacturing the Model 3 standard range of nickel-cathode lithium-ion battery cells, but now it appears that Elon Musk is also pointing to a possible move there.
If you discuss the availability of battery resources on Twitter last night, Musk said that Tesla is ‘moving standard cars to an iron cathode’:
Nickel is our main concern for the scale of lithium ion production. That’s why we’re moving standard iron motors to an iron cathode. Lots of iron (and lithium)!
It seems that the remark implies that the shift is underway, and therefore it may extend beyond just vehicles manufactured in China.
Recently, the CEO has expressed concern about the availability and price of nickel.
During Tesla’s earnings call in July 2020, Musk pleaded with mining companies to increase their nickel production:
Well, I just want to emphasize again that any mining companies out there need to get more nickel. Well. Wherever you are in the world, please exploit more nickel and do not wait for nickel to return after a long time – a highlight you experienced five years ago, whatever. Choose efficient, naturally high-volume, environmentally friendly nickel extraction. Tesla gives you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way. Therefore, this message will hopefully be conveyed to all mining companies. Please get nickel.
Nickel prices have risen recently and are already 16% higher this year, partly due to the demand for electric car batteries.
Battery cells with nickel cathodes have more energy and power density than cells that use iron phosphate, and therefore Tesla uses the latter only in electric vehicles with a shorter distance.
FTC: We use revenue to earn automatically affiliate links. More.
Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.