Tesla recently lowered the price of the Model 3 in China, which was possible only because of both the economies of scale and a new LFP battery. In this video, I discuss how the LFP battery will affect Tesla.
Get up to TWO free stocks on Moomoo at https://j.moomoo.com/001wUt
If you enjoyed this video, please hit the like button and subscribe! It really helps out with the channel.
Music used in the beginning: https://www.youtube.com/watch?v=94qGlICfzes
All other music used in this video was from Lakey Inspired's Patreon exclusive music.
Lakey Inspired's soundcloud: https://soundcloud.com/lakeyinspired
Get up to TWO free stocks on Moomoo at https://j.moomoo.com/001wUt
If you enjoyed this video, please hit the like button and subscribe! It really helps out with the channel.
Music used in the beginning: https://www.youtube.com/watch?v=94qGlICfzes
All other music used in this video was from Lakey Inspired's Patreon exclusive music.
Lakey Inspired's soundcloud: https://soundcloud.com/lakeyinspired
Tesla has recently filed with the Chinese government for a new model, three with Tesla's new lithium iron phosphate batteries. This new battery will allow Tesla to lower the cost for battery manufacturing by significant amount, consequently, resulting in higher profit margins in this video. I'm going to explain why Tesla is switching up its battery chemistry for the model 3 in China and how this will affect Tesla in the future. As of now Tesla uses nc8 batteries for their vehicles, with nca staining for nickel, cobalt and aluminum.
This goes against the traditional method of producing batteries, as most of the likely automakers are using NCM batteries, which stands for nickel, cobalt and manganese. However, in late 2019, one report stated that Tesla would be switching to NCM batteries towards Chinese main model 3. This report was deemed inaccurate, as the author clearly displayed their inaccuracies with battery knowledge. It's been over half a year since then, and it's official that the report was wrong.
Instead, Tesla will use an LFP battery consisting of lithium iron and phosphate. This NIMH battery will be manufactured by LG, Chem and C ATL and will take place at Tesla's Shanghai Giga Factory, similar to Tesla's partnership with Panasonic. This was revealed when Tesla filed for approval of the lfpp batteries with the Ministry of Industry and Information Technology. Now you might be wondering what are the benefits of Tesla's new LFP battery? You might have noticed that, for once, cobalt is not inside the battery chemistry for Tesla's new LFP battery.
The reason why this matters is both because of ethical and economical reasons in the Democratic Republic of Congo, which is a country located in Central Africa, kids, are forced to do the dangerous manual labor. A recent lawsuit was filed against Apple, Google, Microsoft and Dow for taking advantage of this child labor by using the LFP battery Tesla will be able to transition away from the cobalt mined by the children in Africa. Not only that, but cobalt is extremely expensive. So, by staying away from cobalt, this lowers the cost for battery manufacturing.
To top it off the chemistry for lfp batteries allows the batteries to not burn as fast as the traditional chemistry resulting in less fires. However, while this all sounds, great LFP batteries have been avoided. For a reason, LF e batteries have always had a lower energy density than NCAA and NCM batteries in the past, causing many automakers to stick with the batteries that contained COBOL. Nonetheless, CA TL has improved the LFP batteries, energy density and life time over the past few years, allowing Tesla to start using the battery.
Ultimately, the primary goal for Tesla here is to lower the manufacturing cost of the model 3 in China. This is the reason why Tesla was able to lower the price of the Model 3 in China from forty five thousand eight hundred dollars to forty one thousand three hundred dollars. Tesla's new battery replaces expensive metals like nickel and cobalt, resulting in Tesla's battery pack. Production cost dropping to eighty dollars per kilowatt hour according to Reuters, Tesla CFO Zachary Kirk Horne has also noted that there are still more opportunities to bring the price down for the China main model. Three, her horn has discussed how the economies of scale will allow them to bring down the production cost for the Model 3, as he stated that there's no significant opportunity left to take costs out so fixed cost absorption from higher production volumes which are occurring in q2 And will occur through the rest of the year were not fully localized on the supply chain gap, and so, while a lot of the supply chain is localized, it's not complete and there's still additional opportunities there. Recent drone trucks above Tesla's Shanghai gigafactory, have revealed a massive expansion that is taking place once the economies of scale plays out. With this new expansion, Tesla will be able to use those profits to expand even more until the company reaches a point where the production capacity meets the demand. This video is sponsored by moo.
Moo-Moo-Moo is a Commission's free trading platform that provides trading from 4:00 a.m. to 8:00 p.m. a customizable UI and level 2 data, which means that it displays real-time bids and ask prices. It also provides access to investing in foreign companies without having to worry about currency exchange.
Right now they are offering two free stocks. If you use a link in the description below, if you enjoyed this video, please hit the like button and subscribe. I appreciate your support.
instead of a 70-75 kw battery and a weight of 600 kg it is better to divide the battery in two. one of 10-15 kw and 100 kg permanent with a range of 100 km that would be enough for the city and a standard battery of 60 kw and 500 kg detachable to rent when you leave the town. instead of stopping at the peco to fill up for the road you can go to an electric charging point in your city and mount a standard 60 kw battery from there and on the way to replace it at another electric charging point with one loaded. the first advantage is that it would save a lot of batteries in the world, especially since the 2 million km batteries will appear, which practically do not wear out and must be fully exploited. if a car is lighter by 500 kg, I think it will have a significantly greater autonomy in the city. this would be the second advantage. a short recharge time of up to 5 minutes to change the battery would be another advantage. the price of electric cars would drop by half. lazy people who do not want to charge the car every night or people who have range anxiety can use both batteries permanently with the assumption of costs. I'm waiting for opinions
Musk makes this 2nd rate technology for China because he doesn't want the Chinese poking in his Li Ion Batteries.
Why does Tesla spread their factories out so much? That must add to the cost of realestate
Im using LFP in my tiny house, it cost $4500 for 360ah capacity and powers everything easily, however I would double it if I had the money, Tesla using LFP can only mean cheaper, Lighter more energy dense batteries trickling down the chain for all of us in the years to come. If you DIY it makes economic sense now but off the shelf solutions could start making sense in a few years.
"Lithium Iron"?
I seriously doubt that Tesla is gonna be using liFePO4 I mean they aren't new and yes they are a saver chemistry but at the expense of energy density. They are trying to make their batteries more energy dense not less.
Suing the wrong people. If you have to sue, sue the people mining it!
I own the Tesla Model X and its power train is truly out of this world!
However, build quality, ergonomics, and convenience features are subpar to ICE car manufacturers.
As such, Tesla needs to partner with some ICE car manufacturer to produce the chassis while Tesla provides the power train.
That will result in a perfect car in every way.
I don't think LG Chem is supplying LFP. Low energy density means more material usage. It cannot be cost cutting approach. The cobalt ratio in cathod material has dropped to 10% already. It will drop to 5%. LFP will be the solution for Chinese market cheap car segment only.
I have myself an accent when I speak English but I have a hell of a time understanding anything. When you do a video and you only record a script, why would you not take a native English speaker to do the job. Just a well meant suggestion. The content is cool. I think.
CCP will soon be out of the picture.
That old myth about Cobalt mined by kids in the Congo keeps coming around. It was a propaganda ruse. The fact is the vast majority of cobalt is minded like any other mineral using machines in modern mines …not manual labour.
“Consequently resulting” is redundant.
"Cobalt mined by the children of Africa." Total bull shit claim!
Most of the Cobalt comes from the Congo as a by product of Nickel mining, done by giant machines operated by adults. Children work in artisan mines but don't produce that much cobalt, because even two dollars of cobalt a day is a lot for their situation. You talk about as if all cobalt in the Congo is produced by children.
A different utilization of iron energetically is quite important!
interestinggggggggg…
So awesome that those kids can now starve in the jungles of the Congo!!
Tesla already humanely sources cobalt and everything else.
Another benefit of advanced LFP batteries manufactured in China, is that the IP for such batteries will leak and be stolen. This might well result in a lot of Chinese industry cranking out advanced long-life li-ion batteries. This could accelerate the adoption of li-ion batteries for vehicles by other companies while increasing the commerce ties between China and the rest of the world. In zero-sum terms, this seems bad, but historically, commercial ties and trade have been the best deterrent to war. In 2020 and the next couple of decades, this will be an increasing concern.
Dope.2nd comment
This will add to vehicle volume production.