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LFP Battery's Advantages for Tesla

Yesterday news broke that Tesla is getting LFP batteries from a Chinese company in the United States. While we discussed why it's a big deal for Tesla, in this report we are going to take a look at the advantages of LFP batteries for Tesla.

"Tesla is getting LFP batteries in the US. These are lithium iron phosphate batteries and are much more safer and efficient than current batteries. This is a big deal and will allow Tesla to produce half a million vehicles a year extra," yesterday wrote Jeremy Johnson at Torque News.

While I prepared this video report on Tesla getting LFP batteries in the United States, Torque News contributor Dean McManis offered these thoughts discussing the advantages of LFP batteries for Tesla.

Here is what McManis wrote:

"LFP's main advantages are low cost and good availability. Not efficiency, energy density, pack weight, or performance. It makes good sense to use LFP batteries for Powerwalls, and also with their entry level models. The problem is that Tesla is not passing on any of the cost savings with lower priced models. While I never complained about Tesla's $35K Model 3 availability, the lowest price for the entry level Model 3 (using LFP batteries) is $45K ($10K more).

"Most EV owners charge up overnight, and don't need to recharge from zero to 100%, so they don't have to worry about having a shorter battery lifespan, where LFP could otherwise be an advantage. At least Tesla has not raised the Model 3 Performance price much, so it has become a relatively better value.

"LFP batteries do have some advantages, and it is predictable that Tesla would be this battery buyer, but I think that it has more to do with profit and supply rather than anything else," McManis wrote.

But there is the opposite side too: While LFP battery cells are safer, they may have 10-15% lower capacity for the same size compared to the other types of lithium batteries. This means electric vehicles with LFP batteries will be cars with some 10-15% less range, at a time when range anxiety is still a concern.

What are your thoughts? Please, let me know in the comments section below. Are LFP batteries good or bad for Tesla?

Image source: Screenshot from Gotion Battery, which is expected to supply LFP batteries for Tesla in the United States.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.


Bjørn Sigurd J… (not verified)    January 16, 2022 - 7:10AM

10-15% less range is of no/little concern since LFP batteries may be charged to 100% on regular basis, insted of only to 80-90%.

100% - 15% + 15% ~= 100%

Dan (not verified)    February 8, 2022 - 10:56AM

"The problem is that Tesla is not passing on any of the cost savings with lower priced models."
This is a result of supply shortages. Tesla had been lowering prices and adding features until about April of last year, as supply shortages became more straining on manufacturers. They already have trouble keeping up with the demand as it is. There is no logical reason for them to lower prices right now.