https://www.reuters.com/business/autos-transportation/tesla-use-iron-based-batteries-semi-electric-trucks-affordable-electric-car-2023-04-06/
San Francisco, April 6 (Reuters) - Tesla Inc (TSLA.O) said it plans to expand the use of cheaper, iron-based batteries to a version of its Semi heavy electric trucks and an affordable electric vehicle.
Tesla Chief Executive Elon Musk has championed on the lithium iron phosphate (LFP) battery technology dominated by Chinese suppliers, saying in March, "the vast majority of the heavy lifting for electrification will be iron-based cells."
The automaker said its proposed small electric vehicles will use LFP batteries with capacity of 53 kilowatt-hours (kWh), versus 75 kWh for Model Y and Model 3.
LFP cells also tend to pose less of a fire risk than nickel-based cells.
Tesla currently sources LFP batteries from China's Contemporary Amperex Technology Co (300750.SZ), which does not have a factory in the United States. Tesla's South Korean supplier, LG Energy Solution (373220.KS), said it plans to build LFP batteries at its proposed Arizona factory.
From its Master Plan released yesterday, 42 million compact cars will be sold using the LFP.