Tesla has talked about the use of iron-based batteries for its future car models all across the globe. Tesla provided this information in its third-quarter earnings report. Elon Musk has been giving hints about the use of cheaper batteries' growing role in his company's product line.
LFP (Lithium Iron Phosphate) batteries using older cheaper battery cells are attractive because they are not dependent on ultra-scarce raw materials like cobalt and nickel. The CFO of the company has said during an investor call that the company has seen the effects of the pricing of nickel and aluminum.
More LFP plants are situated in China and this is the reason why the company dominates the market for LFP batteries. These plants are soon to expire and Tesla is waiting for that time. The company is planning to bring these LFP battery production factories to the same place where the vehicles are manufactured.
SVP of Power train and Energy Engineering at Tesla told investors that the company is planning to localize all the key parts of the vehicle and they are working internally with the suppliers to make it happen. The company also gave an update on the 4680 battery pack, an in-house design created by the company. This battery will be capable of greater energy density and range. The battery is on track and will come out at the beginning of next year.