Tesla will promote the lithium iron phosphate battery route in the US market, CATL and BYD may become potential suppliers

　　Recently, users in the United States who booked the enhanced standard battery life version of Model 3 received an email stating that if they want to get the car in advance, they can choose a lithium iron phosphate battery from China. At the same time, a lithium iron phosphate battery model appeared in the US model inventory. The battery life dropped from 263 miles to 253 miles, and the price remained unchanged at $39,990.

　　Some car owners asked Tesla CEO Musk on social media what is the difference between the two models. Musk responded that he prefers lithium iron phosphate batteries because they can be charged to 100%, while ternary lithium batteries are only recommended to 90%.

　　This news means that the technical route of lithium iron phosphate has been further confirmed by Tesla and will be promoted to the US market. Compared with the ternary battery, the lithium iron phosphate battery has better safety and stability, and the cost is lower, but it is slightly inferior in terms of energy density.

　　Currently, the Chinese version of Tesla's standard battery life Model 3 and Model Y use lithium iron phosphate batteries. Thanks to its low price, the starting price of the standard battery life version of Model 3 in China has been successively lowered, currently at 235,900 RMB, while the standard battery life Model Y has also entered the market at a low price, with a starting price of 276,000 RMB.

　　CATL is the main supplier of Tesla's lithium iron phosphate battery. According to the previous supply agreement, CATL’s supply period for Tesla is from July 1, 2020 to June 30, 2022. In June 2021, the supply agreement was again extended to 2025.

　　It is worth mentioning that CATL announced on August 18 that it will build a production base in the Shanghai Lingang new district, and Tesla’s Shanghai factory is also located in this area. Therefore, the construction of the factory is interpreted as CATL’s full protection of Tesla. Battery supply initiatives. In addition to the production base, in accordance with the strategic cooperation framework agreement signed between CATL and the Shanghai Municipal Government, CATL will also establish an innovation center, international functional headquarters, and Future Energy Research Institute in Shanghai.

　　BYD may also become a potential supplier for Tesla. In early August, there were market rumors that BYD would start supplying lithium iron phosphate blade batteries for Tesla in the second quarter of 2022, and said that Tesla models equipped with "blade batteries" have entered the C-sample test phase. In this regard, BYD said it "does not comment."