Tesla’s Future Fleet of Varying Battery Chemistries: LFP vs Lithium-Ion

onlyusedtesla
4 min readApr 12, 2023

Tesla’s future vehicle lineup will include a mix of intelligently-designed battery chemistries based on the needs of a vehicle’s segment.

Per Master Plan Part 3, Tesla has unveiled what a complete vehicle lineup should look like for the automaker

  • Compact — not yet announced. Battery: LFP.
  • Midsized — Model 3 and Model Y. Battery: LFP.*
  • Commercial/Passenger Vans — not yet announced. Battery: High Nickel.
  • Large Sedans, SUV’s, & Trucks — Model S, Model X, and Cybertruck. Battery: High Nickel.
  • Bus — not yet announced. Battery: LFP.
  • Short Range Heavy Truck — Semi Light. Battery: LFP.
  • Long Range Heavy Truck — Semi Heavy. Battery: High Nickel.

LFP: Lithium-Iron Phosphate

LFP stands for lithium-iron phosphate, which is utilized as the cathode of the vehicle’s underlying battery pack.

This type of battery is well-suited to ‘Standard Range’ vehicles that have lower power requirements.

While reduced energy density and power output are characteristics of a lithium-iron phosphate battery, they can be charged to 100% nightly without added risk of battery degradation thereby making them easier to maintain long-term as they can support significantly more battery cycles.

Most importantly, LFP batteries contain no nickel or cobalt. Both elements are relatively difficult to mine from the Earth, and can be more costly.

Tesla is targeting a battery pack size of as low as 53kWh for the much-anticipated Compact segment vehicle, 75kWh for Model 3 and Model Y, 300kWh for a forthcoming Bus, and 500kWh for a Semi Light configuration.

A Bus and Semi Light can utilize a large LFP battery due to a lack of high-performance requirements, and having the size to support its lower-density structure.

Tesla would have to use a larger pack than may be feasible to produce a ‘Long Range’ Midsized or Sedan/SUV/Truck-type vehicle.

LFP can’t support Performance configurations.

*Model 3 Rear-Wheel Drive currently utilizes a lithium-iron phosphate battery produced in China. Tesla has plans to move production lines to North America for the purpose of the tax credit for all upcoming vehicles that are planned to utilize LFP batteries.

High Nickel: Lithium-Ion

High Nickel for Tesla’s utilization can be viewed as a more conventional lithium-ion battery.

In contrast, lithium-ion batteries can support greater energy density and extreme levels of power output.

They’re best-suited to Long Range and Performance configurations.

Lithium-ion is the standard for electric vehicles across the industry, and serves as the foundation for a majority of Tesla’s current lineup.

They can utilize a variety of different battery materials to make up the cathode, making lithium-ion slightly adaptable for production purposes.

The latest 4680 cell structure that Tesla has designed takes advantage of the opportunity for innovation in lithium-ion technology.

Tesla plans to continue using lithium-ion batteries with a minimum pack size of 100kWh, only rising to 800kWh for the Long Range Semi Heavy.

In this instance, Tesla is calling lithium-ion ‘High Nickel’ due to a Tesla-developed battery chemistry that will utilize zero cobalt and a high level of Nickel Manganese when it’s ready for production within a few years.

LFP vs High Nickel

Outlooks for both battery chemistries are forward-looking over the next decade.

Lithium-ion batteries are more capable, while Tesla is positioning LFP for immense volumes.

68 million vehicles are projected to be produced with LFP batteries annually, while 21 million are projected to be produced with High Nickel batteries.

This in stark contrast to lithium-ion currently encompassing the vast majority of electric vehicle production.

For most vehicles, longevity and simplicity in charging are both more practical and preferable to high levels of range and performance.

LFP can also be nearly half the cost to produce per kWh, although rapidly-fluctuating material costs are obfuscating the difference between the battery chemistries. LFP remains about 25% cheaper to produce per kWh, which may change or improve over time as the cost of nickel increases.

Tesla’s Future Lineup

We are confident that Tesla has given careful consideration to the battery chemistry utilized in each vehicle as the automaker expands to encompass every vehicle segment.

LFP is conducive to high volumes and long-lasting battery packs, while High Nickel will sustainably continue to push the boundaries of range and performance.

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