Tesla Inc., the Palo Alto, CA-based American multinational e-vehicle manufacturer of billionaire entrepreneur Elon Musk, had been seeking Chinese Government’s approval to manufacture its model 3 vehicles with LFP (Lithium iron phosphate) batteries at its Shanghai Gigafactory, which happened to be much-cheaper than the conventional EV batteries, raising possibilities of a more-affordable Tesla model 3 in a highly clogged e-vehicle market as early as by end-2020, a document published in the website of China’s Ministry of Industry and Information Technology had unveiled.
In point of fact, latest development on Tesla Inc.’s Model 3 vehicles came forth roughly three months after a press agency report had unveiled that the California-based e-vehicle industry mogul had been in an advanced stage talk for LFP battery supplies with a Chinese battery maker CATL (Contemporary Amperex Technology Co.
Ltd.), while according to the industry analysts, the CATL-made LFP batteries don’t contain any cobalt, the costliest metal in e-vehicle batteries.
Tesla seeks China approval for LFP batteries as Washington ramps up pressure
On top of that, although the document published in the website of China’s Ministry of Industry and Information Technology, did not mention the name of the battery supplier, earlier this week the Trump Administration had told in a statement that it had been brewing off a plan to incline a restriction on US-based companies which had built business holdings oversees to avert additional US tariffs, while the latest leg of Sino-US tension could compound Tesla Inc.’s application, suggested a bunch of analysts.
Meanwhile, on the contrary, another group of Wall St. analyst were quoted saying that the ongoing tension would unlikely to leave even a scar mark on Tesla Inc.’s Chinese businesses given its market dominance amid a multi-year low fossil fuel price.
As of now, the US electric vehicle manufacturer, which had purchased lands in the suburbs of Berlin earlier this year to build a European manufacturing hub amid EU-US tariff spat, has been using EV batteries from Panasonic Corp.
alongside LG Chem for its Shanghai Gigafactory, while CATL said in a statement that it had reached an accord with Tesla Inc. to start supplying LFP batteries as early as July this year.