Tesla permitted to produce LFP battery-powered Model 3 in China

Shanghai (Gasgoo)- Tesla has received governmental approval to locally build in China the Model 3 vehicles powered by lithium iron phosphate (LFP) batteries, a catalogue issued by China's Ministry of Industry and Information Technology (MIIT) showed.

Powered by a battery pack with energy density of 125Wh/kg, the new Model 3 boasts a NEDC-rated range of 468km, according to the MIIT. Its curb weight stands at 1,745kg, 131kg heavier than the existing Standard Range Plus.

(China-built Model 3 Standard Range Plus, photo source: Tesla)

The sedan's measurement still remained unchanged at 4,694mm long, 1,850mm wide and 1,443mm tall. The 2,875-mm wheelbase is as same as that of the existing made-in-China model.

The U.S.-based EV manufacturer is looking to use more auto parts from Chinese indigenous suppliers as part of ongoing efforts to localize its supply chain in the world's largest automobile market. Particularly, the local supply of battery, one of most crucial parts for EV development, might be largely associated with the wiggle room for further reducing prices.

The China-made Model 3 has to-day used LG Chem's NCM 811 cylindrical cells. CATL, China's biggest EV power battery maker confirmed on Feb. 3 it had signed with Tesla, Inc. an agreement, pursuant to which the Ningde-based battery titan would provide the latter with lithium-ion power batteries from July 1, 2020 to June 30, 2022. Someone surmise that CATL will afford its LFP cells, while the battery assembly will still be conducted by Tesla itself.

Ping An Securities said it can be basically confirmed that CATL will serve as the battery supplier to Tesla’s China-built Model 3s fitted with LFP batteries, and is in all likelihood offer the EV maker its CTP (cell-to-pack) technology, a battery pack design without modules.

Compared to ternary-lithium battery, LFP battery features lower energy density, while its cost is also lower. By the end of 2019, the domestic unit price of a LFP pack was 0.8 yuan/Wh, 0.25 yuan fewer than that of a ternary-lithium one, according to data released by lithium battery specialist Realli Research.

Reuters reported on May 14 that Tesla plans to introduce a new low-cost, long-life battery in its Model 3 sedan in China later this year or early next, expecting to bring the cost of EVs in line with gasoline models, and allow EV batteries to have second and third lives in the electric power grid. The new battery, which is purportedly designed to last for a million miles of use, is said to be co-developed with CATL.