China's top battery manufacturer CATL will supply Tesla with lithium iron phosphate (LFP) batteries for Model 3 production at its newly built factory in Shanghai. The success of LFP Model 3 has negatively impacted the cobalt and nickel markets, causing a blow to price bulls. The use of LFP batteries has significantly increased Tesla's battery capacity and market share.
In a surprise move, China 's top battery manufacturer CATL will supply Tesla with lithium iron phosphate ( LFP ) batteries for Model 3 production at its newly built $2 billion factory outside Shanghai . Few months in, LFP Model 3 already commands 5% of global EV market, counts for 21% of Tesla battery capacity hitting roads–even before key patent expiry next year. It's January 2024, and unfortunately for said cobalt and nickel bulls the blow from the iron fist is even more severe than feared.
And the runaway success has become a battery-powered juggernaut. During that month nearly four years ago when Elon Musk first announced the move to LFP batteries, the cathode chemistry contributed less than 50 tonnes to overall battery metal demand, according to The 50 tonnes LFP batteries used were a fraction of the nearly 13,000 tonnes of lithium, graphite, nickel, manganese and cobalt that found their way into the batteries of electric passenger cars sold during February 2020
Tesla China Surprise Cobalt Nickel Price Bulls Battery CATL Lithium Iron Phosphate LFP Model 3 Production Factory Shanghai Market Capacity