These batteries will be used in Tesla electric vehicles made in China.
The source claims that Tesla is in an advanced stage of negotiations on the use of batteries manufactured by the Chinese company CATL, in which there is no cobalt. These batteries will be used in Tesla electric vehicles made in China.
Cobalt is one of the most expensive metals in electric vehicle batteries. If an agreement is reached, this will mean that the American automaker will first use the so-called lithium-iron-phosphate batteries (LFP), due to which he will be able to reduce the cost of electric vehicles. Presumably, this will also reduce prices, which would be useful against the background of lower overall sales of electric vehicles in China.
An informant told Reuters that negotiations on the supply of LFP batteries have been ongoing for more than a year. Allegedly, these batteries will be cheaper than currently used at a “double-digit percentage.”
Electric vehicle manufacturers typically use nickel-cobalt-aluminum (NCA) or nickel-manganese-cobalt (NMC) batteries in passenger models because of their high energy density.
Tesla and CATL declined to comment.