Tuesday, July 1, 2025

Tesla unveils its LFP battery manufacturing unit, claims it is virtually prepared

Tesla has unveiled its lithium-iron-phosphate (LFP) battery cell manufacturing unit in Nevada and claims that it’s almost prepared to begin manufacturing.

Like a number of different automakers utilizing LFP cells, Tesla depends closely on Chinese language producers for its battery cell provide.

Tesla’s most cost-effective electrical autos all make the most of LFP cells, and its complete vary of vitality storage merchandise, Megapacks and Powerwalls, additionally make use of the extra inexpensive LFP cell chemistry from Chinese language producers.

This reliance on Chinese language producers is lower than ultimate and significantly sophisticated for US automakers and battery pack producers like Tesla, amid an ongoing commerce warfare between the US and nearly your entire world, together with China.

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As of final yr, a 25% tariff already utilized to battery cells from China, however this elevated to greater than 80% beneath Trump earlier than he paused some tariffs on China. It stays unclear the place they may find yourself by the point negotiations are full and the commerce warfare is resolved, however many anticipate it to be increased.

Previous to Trump taking energy, Tesla had already deliberate to construct a small LFP battery manufacturing unit within the US to keep away from the 25% tariffs.

The automaker had secured older manufacturing gear from one in every of its battery cell suppliers, CATL, and deliberate to deploy it within the US for small-scale manufacturing.

Tesla has now launched new photos of the manufacturing unit in Nevada and claimed that it’s “nearing completion”:

Listed below are a couple of photos from contained in the manufacturing unit (through Tesla):

Earlier reporting acknowledged that Tesla goals to supply about 10 GWh of LFP battery cells per yr on the new manufacturing unit.

The cells are anticipated for use in Tesla’s Megapack, produced within the US. Tesla presently has a capability to supply 40 GWh of Megapacks yearly at its manufacturing unit in California. The corporate can be engaged on a brand new Megapack manufacturing unit in Texas.

Ford can be creating its personal LFP battery cell manufacturing unit in Michiganhowever this facility is considerably bigger, with a deliberate manufacturing capability of 35 GWh.

Electrek’s Take

It’s good to see this within the US. LFP was a US/Canada invention, with Arumugam Manthiram and John B. Goodenough doing a lot of the early work, and researchers in Quebec making a number of contributions to assist with commercialization.

However China noticed the potential early and invested closely in quantity manufacturing of LFP cells and it now dominates the market.

Tesla is now producing most of its autos with LFP cells and all its stationary vitality storage merchandise.

It is smart to spend money on your personal manufacturing. Nonetheless, Tesla is unlikely to catch as much as BYD and CATL, which dominate LFP cell manufacturing.

The transfer will assist Tesla keep away from tariffs on a small share of its Megapacks produced within the US. Ford’s effort is extra formidable.

It’s price noting that each Ford’s and Tesla’s LFP vegetation have been deliberate earlier than Trump’s tariffs, which have had restricted success in bringing manufacturing again to the US.

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