Tesla to construct small new LFP battery cell manufacturing facility with CATL machines, report says

A brand new report states that Tesla goes to construct a small new LFP battery cell manufacturing facility with CATL machines in Nevada.

In keeping with a brand new report from Bloomberg report, Tesla plans to construct a “small facility” utilizing “idle tools” from CATL.

The publication wrote:

The automaker plans to purchase equipment from CATL, because the battery maker is understood, and set up it within the metropolis of Sparks, stated the individuals, who requested to not be recognized. Tesla could have full management of the ability and canopy 100% of the prices, and CATL personnel can be uninvolved aside from serving to to arrange the tools, they stated.

The brand new “small facility” will reportedly construct LFP battery cells for Tesla’ Megapacks.

The truth that it’s going to use machines from CATL is predicted to allow Tesla to rapidly carry the ability to manufacturing.

LFP battery cells are cheaper, extra reliant, than nickel-based Lithium-Ion batteries, however they’re additionally much less power densed, which makes them splendid for stationary power storage merchandise.

The manufacturing of these cells has been restricted to China till lately. Now, it’s making its technique to North America, particularly because of the protectionist rules across the $7,500 federal tax credit score for electrical automobiles, which requires batteries to be made in North America.

LFP cells are beginning to be in style on lower-end EVs with shorter vary.

CATL is already one among Tesla’s prime suppliers of LFP battery cells for its electrical automobiles, particularly these produced in China.

Electrek’s Take

I’d take the report with a grain of salt. I’m not saying it’s fallacious, however the sources usually are not clear. Bloomberg mentions “individuals” on some statements and “an individual” on one other.

Additionally, it talks in regards to the facility being in Sparks, Nevada, the place Tesla’s Gigafactory Nevada is positioned and the place it’s at present increasing manufacturing to incorporate Tesla Semi manufacturing and battery cell manufacturing, however the report doesn’t discuss in regards to the new facility being at Gigafactory Nevada or not.

Once more, it doesn’t imply the report is fallacious. I simply advocate warning.

In any other case, it does make sense. CATL is a Tesla cell provider, however the US has been cautious of Chinese language cell producers coming to the US to reap the benefits of the tax credit score. It is a manner that advantages everybody as Tesla is the producer however it’s utilizing CATL’s experience by means of its equipment.