The cobalt-free battery chemistry LFP (LiFePO4) continues to dominate the battery production in China and its market share keeps growing every month.
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Let’s see the data.
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Battery production in China (May 2021)
- LFP: 8,8 GWh (63,8 %)
- NCM/NCA: 5 GWh (36,2 %)
- Total: 13,8 GWh
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Last month in China LFP battery production increased by 317,3 % compared to May last year.
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It’s clear that the Tesla Model 3 MIC (Made in China) is currently one of the biggest drivers of the increased demand for LFP battery cells.
Moreover, local media is reporting that the Tesla Model Y MIC is expected to receive a more affordable version with a LFP battery starting next month. If confirmed, it’ll be another big push for cobalt-free batteries.
Currently, the Tesla Model Y in China starts at 347.900 yuan (44.901 euros), but it needs to get below 300.000 yuan (38.719 euros) to become eligible for government subsidies.
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Next year, LNMO, which is another cobalt-free battery chemistry, should also get some traction.
Tesla and Volkswagen expect LFP and LNMO to become the standard battery chemistries in electric cars, relegating high-nickel content chemistries - such as NCMA - to niche electric vehicles that require extra range.
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Anyway, I wonder how long will it take before electric cars made in Europe get cobalt-free batteries. Hopefully the battery cell plant currently under construction in Germany by CATL starts producing LFP cells very soon and at full speed.
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