It appears that Tesla is now making the necessary preparations for a serious ramp of its Model 3 and Model Y production in Gigafactory Shanghai next year. As per recent reports from China, Tesla has reportedly placed an order for 45 GWh worth of lithium iron phosphate (LFP) batteries from Contemporary Amperex Technology (CATL), one of its key battery partners.
LFP batteries are currently being used in the Model 3 Standard Range Plus that is produced in Gigafactory Shanghai, and the cells are reportedly being used to power the Model Y Standard Range as well. Considering that the Model 3 SR+ is reportedly fitted with a 55 kWh battery and the Model Y SR is equipped with a 60 kWh pack, the 45 GWh order from CATL could correspond to nearly 800,000 vehicles, local Chinese news outlet 36 Krypton noted.
Producing nearly 800,000 Standard Range vehicles from Gigafactory Shanghai could effectively raise Tesla’s deliveries next year, potentially allowing the company to comfortably deliver over a million vehicles in 2022. This is especially impressive considering that this year, Tesla’s global sales from Q1 to Q3 have stood at 627,350. Among this number, 614,165 were Model 3 and Model Y.
The reports, however, note that Tesla’s battery push would not only be focused on its China-based operations. Citing industry sources, the local media outlet also stated that Tesla’s Gigafactory Nevada facility would also be expanding its capacity to over 40 GWh next year. Interestingly enough, the industry sources suggested that both Panasonic and LG Chem would be involved with the expansion of the US-based battery facility.
CATL, for its part, has declined to comment about Tesla’s reported 45 GWh order for 2022. Such an order is well within character for Tesla, however, as CEO Elon Musk has been clear in the past that the company would need all the batteries that it could acquire from its suppliers. Musk has even noted that Tesla’s in-house 4680 battery cell program is in no way a sign that the company would abandon its battery partners. It is simply a way for Tesla to increase its battery supply for its growing range of electric vehicles and energy products.
LFP batteries are playing a larger role in Tesla’s operations. Apart from their use in the company’s Standard Range vehicles, the batteries are also being used for the company’s energy storage products. These include the Megapack, Tesla’s 3 MWh flagship battery storage unit that’s specifically designed for grid use.
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