Why your next Tesla might be more LFP than NCM
STORY: Source: Benchmark Mineral Intelligence
Most electric batteries in the U.S., Canada and the EU are nickel cobalt manganese cells or NCMs
But a cheaper alternative, already popular in China, is finally winning some global appeal
Elon Musk’s Tesla is among the early adopters of lithium iron phosphate batteries or LFPs
It fitted them to 150,000 EVs in Q1, 2022 - nearly half its total output
Tesla’s revelation comes as the Russia-Ukraine conflict hits nickel supplies
Meanwhile cobalt is tainted by reports of dangerous mining conditions in the DRC
A dozen or so companies are considering LFP factories in the U.S. and Europe
They cite the relative abundance and cheaper prices of iron as a key factor
LFPs also pose less of a fire risk, and lose less performance through constant charging
They fit the needs of cheaper or commercial EVs where range is not so critical
But there are hurdles, not least China’s current dominant position on LFPs
They’re also heavier, bigger and contain more costly and scarce lithium than NCM cells
