On October 21st, Tesla released its latest quarterly financial report, and also announced that it will use lithium iron phosphate batteries as power in the standard battery version of electric vehicles.

According to reports, this adjustment is limited to Tesla's standard endurance version of electric vehicles. In the long-distance endurance version, Tesla will continue to use NCA lithium batteries.

Foreign media analysis pointed out that through this move, Tesla can increase profit margins in the full range of pure electric vehicles, while at the same time it will not bring about a rise in sales prices. Previously, Tesla has been criticized by outsiders because of too frequent product price adjustments.

Currently, Tesla is already using lithium iron phosphate batteries at its electric vehicle factory in Shanghai, China. Such electric vehicles are sold in China, the Asia-Pacific market and Europe. According to reports, the Chinese market has already promoted the use of lithium iron phosphate batteries. According to industry research institutions, 95% of the world's lithium iron phosphate batteries are produced in China.

Sam Abuelsamid, the chief analyst of the market research company "Guidehouse Insights", told the media that the use of lithium iron phosphate batteries has benefits and adverse effects. The cost of this kind of battery is cheaper, the electrode does not use nickel or cobalt at all, the lithium iron phosphate battery is more stable and naturally safer.

However, Absamed also pointed out that the most disadvantageous part of lithium iron phosphate batteries is that the density of stored energy is relatively low, which means that the same weight of lithium batteries, lithium iron phosphate batteries can output less electricity, and lithium iron phosphate batteries. The performance of the battery is more easily affected in cold weather.

Absamed said that Tesla's switch to lithium iron phosphate batteries is actually a wise move. They will not reduce the price of new versions of electric vehicles because of this, so the profit margin of the product will naturally increase.

The analyst said that in the global automotive industry, companies such as Ford Motor and Volkswagen in Germany have expressed interest in using lithium iron phosphate batteries in some low-priced electric vehicle models. In addition, for manufacturers of commercial electric vehicles (such as electric trucks used for express delivery), lithium iron phosphate batteries are also very attractive because their own mileage requirements are not very high.

Taylor Ogan, the chief executive of Snow Bull Capital, an American investment company, has always been optimistic about Tesla's development prospects and stock trends. Ogan commented that the lithium iron phosphate battery is cheaper and safer. Through its chemical characteristics, users can charge the battery 100% and have a longer battery life. In addition, electric vehicle owners do not have to worry too much about the performance degradation of lithium iron phosphate batteries.

In addition, the lithium iron phosphate battery has another advantage, that is, it can better realize the recycling of used batteries.

Lithium-ion battery (LIB) has become the main energy storage solution in modern social life. Among them, lithium iron phosphate batteries are a perfect substitute for lead-acid batteries, and are the first choice for grid-connected peak shaving, off-grid energy storage, photovoltaic energy storage, UPS, data center and other industries.