To bring the cost of electric vehicles in line with gasoline-powered cars, Tesla plans to use new battery packs in the Model 3 for China in late 2020 or early 2021.
The American carmaker strives to achieve the status of a power company able to compete with traditional energy providers.
Elon Musk promises to tell about Tesla’s advances in battery technology during a “Battery Day” in late May, Reuters reported.
The mentioned battery lasts for one million miles. Tesla developed it in collaboration with Contemporary Amperex Technology Ltd (CATL) of China.
The battery will be launched in China first, and then in other markets, including North America. For those markets, Tesla will use improved versions of the battery.
Tesla’s new batteries are low-cobalt and cobalt-free. They use the materials enabling storage of more energy for longer periods.
CATL also has developed a simpler and less expensive way to package battery cells, called cell-to-pack. The new technology should help reduce the battery weight and cost.
Now Tesla manufactures nickel-cobalt-aluminum (NCA) batteries jointly with Panasonic, and purchases nickel-manganese-cobalt (NMC) batteries from LG Chem in China.
In 2021, CATL plans to supply an improved long-life nickel-manganese-cobalt battery with 50% nickel cathode and only 20% cobalt to Tesla in China.
CATL’s low-cobalt NMC battery packs are close to $100/kWh. According to estimates, this is the level at which EVs reach rough parity with internal combustion rivals.