Tesla is reportedly in talks with China’s Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer, to build a new battery factory in the United States. The factory would produce lithium iron phosphate (LFP) cells, which are cheaper and safer than traditional nickel and cobalt batteries, but offer less energy density.
The move is part of Tesla’s plan to shift more electric cars to LFP batteries in order to overcome supply concerns. It would also enable buyers of Tesla vehicles to take advantage of the federal tax credit for electric vehicles, which requires that the batteries of electric vehicles be produced in North America in order for buyers to get the full $7,500 credit.
Ford recently announced a similar plan to partner with CATL to build LFP battery cells at a $3.5 billion factory in Michigan. Now Tesla is rumored to be doing the same thing, with Texas being a possible location for the new factory.
The report is light on detail, but it states that Tesla is looking at a similar structure to Ford’s own deal with CATL. If the deal goes through, it would enable Tesla buyers to get the full tax credit on the base Model 3, which is about to lose the incentive because its cells currently come from CATL’s Chinese factories.
Tesla’s move to build a new battery factory in the US with CATL could be a major step forward for electric vehicle production in North America. It would provide a much-needed boost to the industry and could help make electric vehicles more accessible and affordable for consumers.
FAQ
Q1. When will electric cars be available in the UK?
A1. Electric cars are already available in the UK and can be purchased from a variety of dealerships.
Q2. Where can I find electric car charging stations near me?
A2. You can find electric car charging stations near you by using online maps or apps such as PlugShare or ChargePoint.
Q3. Which electric car is the best?
A3. The best electric car depends on your individual needs and preferences. Some popular models include the Tesla Model 3, Nissan Leaf, and Chevrolet Bolt EV.
