The world’s two largest economies have yet to resolve disputes over tariffs, intellectual property rights, and China’s invasion of Taiwan’s air defense identification zone. And China’s radical regulatory crackdown, primarily targeting the technology sector, could pose yet another hurdle.
Tesla currently uses Chinese CATL LFP batteries on some Chinese Model 3 and Model Y
Tesla Inc wants to move to cheaper batteries for electric vehicles, but first how to overcome political tensions to get Chinese partners to manufacture iron-based batteries near US factories You need to understand. The world’s two largest economies have yet to resolve disputes over tariffs, intellectual property rights, and China’s invasion of Taiwan’s air defense identification zone. And China’s radical regulatory crackdown, primarily targeting the technology sector, could pose yet another hurdle. China adopted this technology early to manufacture 95% of the world’s lithium iron phosphate (LFP) batteries, but major patents soon expired and Tesla puts LFP batteries in the world’s standard range of vehicles. Adopted, battery production factory.
“Our goal is to localize all major parts of the continent’s vehicles,” Drew Barino, senior vice president of powertrain and energy engineering at Tesla, said in a statement Wednesday. Tesla is building factories in the United States and Germany. “We work internally with our suppliers to reach that goal, not only at the final assembly level, but as upstream as possible.”
Tesla is currently using China’s CATL LFP batteries in some Chinese-made Model 3 and Model Y, and has launched an entry-level Model 3 sedan with LFP in the United States. The company did not respond to requests for comment.
LFP technology is considered cheaper and safer than nickel-based batteries, but it doesn’t have the same energy density as nickel-based batteries, so you can move your car farther on a single charge. The technology is attracting attention from EV makers, and Reuters is in early negotiations with CATL and BYD in China in June to obtain an LFP battery for a planned electric vehicle. He reported that he wanted to build a factory in the United States. However, CATL hesitated to build a factory in the country because of political tensions and cost concerns between Washington and Beijing, people said at the time.
“We appreciate the opportunities and potential for manufacturing localization in North America,” CATL said in a statement on Friday. “We can’t underestimate the entire geopolitical side,” Sanjiv Malhotra, founder of battery startup Sparkz and former US Department of Energy executive, told Reuters. “Our customers don’t want to fall into this political predicament,” said a U.S. startup considering setting up an LFP production line in the U.S. to challenge China’s domination. rice field.
According to Ross Capital analyst Craig Irwin, CATL is probably better manufactured in China, where the world’s lowest cost materials are available. “US facilities will need a better US supply chain to be similar to the low costs available in China.”
“China’s pride and joy”
President Joe Biden has prioritized supporting the deployment of electric vehicles to combat climate change, but battery constraints could remain a major hurdle to his ambitious plans. China is the world’s largest EV market and dominates the supply chain for the manufacture of lithium-ion batteries, including the processing of minerals and raw materials.
Taylor Organ, Chief Executive Officer of Snowbull Capital, said: Electric Last Mile Solutions Inc (ELMS), a commercial electric vehicle company that currently imports CATL battery packs, is discussing the possibility of procuring batteries at CATL’s potential US plant.
Last year, CEO Elon Musk said Tesla will use LFP batteries for the Model 3 made in China, a move that will allow the battery capacity of semi-tracks and other vehicles that require high-density, nickel-based long-range batteries. Said to be released.
Since then, Musk has promised to use this technology in more vehicles and energy storage systems. The Houston Energy Project uses LFP batteries.
The company is facing higher costs, primarily as cobalt prices have risen by about 70%, nickel by about 20% and aluminum by about 50% so far this year. Tesla uses these materials to make batteries.
(This story has not been edited by NDTV staff and is automatically generated from the syndicate feed.)
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Tesla seems to pave the way for Chinese battery makers to come to the United States
Source link Tesla seems to pave the way for Chinese battery makers to come to the United States