Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Trending in China: Will Weibo’s Fight Against Porn Have Other Unintended Side Effects
Tencent Leads $40 Million Investment in Online Art Educator
Alibaba Aims to Facilitate $1.4 Trillion in Sales Annually By 2024
Trending in China: Death of Giant Panda Cubs Sparks Concerns About Treatment of ‘National Treasure’
China CFO of Indian Oyo Quits to ‘Pursue Other Professional Opportunities’
Sequoia Capital Opens Its First Tech Incubation Center in Shanghai
Some 266 Foreign-Invested Firms Approved to Offer Telecom Services in China in First Half of 2020
Trending in China: Should Internet Celebrities Be Part of the School Curriculum?
Sequoia China Leads Nearly $100m Round in Storytelling App Kuaidian
Medical Robot Maker Finds Elixir in STAR Board’s Market Reforms
Trending in China: Outrage Ensues as Updated U.S. Student Visa Policies Force International Students into a Dilemma
Tencent’s PUBG Mobile Game Hits $3 Billion Milestone
Luckin Coffee Shareholders Vote to Remove Chairman, Bloomberg Reports
France Won’t Ban But Will Discourage Use of Huawei 5G Equipment, Official Says
Trending in China: ‘Lipstick King’ Li Jiaqi Settles in Shanghai, Prompting a Rethink of ‘Talent’
Tencent Plays in U.S. With California Game Studio Launch
Trending in China: Shenzhen Thinks Only Children Should Get Paid Leave to Look After Their Parents - Cue Heated Debate
German Drugmaker BI Launches Shanghai Center to Harness Chinese Expertise
Chinese Self-Driving Truck Firm Aims to Cover Most of U.S. by 2024
Trending in China: Chinese Netizens Tell Indian Prime Minister Modi To ‘Shut The Door On The Way Out’ As He Quits Weibo
Tesla and CATL Enter Advanced Stages of Talks Over Cobalt-Free Battery Supply

By Ding Yi / Feb 19, 2020 05:55 PM / Business & Tech

Photo: VCG

Photo: VCG

Tesla and China’s Contemporary Amperex Technology (CATL) are in the advanced stages of negotiations that may see the U.S. electric car maker use the latter’s cobalt-free batteries in vehicles built at the U.S. automaker’s Shanghai factory, Reuters reported Tuesday, citing sources familiar with matter.

Cobalt is an expensive mental. The use of cobalt-free batteries, also known as lithium iron phosphate (LFP) batteries, could help Tesla lower its production costs in China, where sales of new energy vehicles suffered a sharp drop of 54.4% in January amid the novel coronavirus outbreak.

A source told Reuters that LFP batteries will be “double-digit percent” cheaper than Tesla’s existing batteries, saying that the two firms have been trying for more than a year to reach an agreement.

LFP batteries are typically less energy-dense than nickel-cobalt-aluminium (NCA) and nickel-manganese-cobalt (NMC) batteries, the two types of batteries that electric vehicle makers usually install on passenger vehicles. A battery with higher energy density enables an electric car to run farther on a single charge.

The sources revealed to Reuters that CATL has been developing a technology to boost the energy density and safety of its LFP batteries, adding that Tesla has no plans to stop using its NCA batteries.

The news comes more than two weeks after CATL announced a two-year battery supply agreement with Tesla. But the Chinese battery maker did not specify which kinds of batteries it will provide to Tesla.

Tesla, which is betting big on its Shanghai-made Model 3 sedans to win China market share, also buys batteries from Japan’s Panasonic and South Korea’s LG Chem.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Chinese Battery Maker CATL Confirms Partnership with Tesla


Share this article
Open WeChat and scan the QR code