China, and iron, to make Teslas more affordable

March 10, 2021March 14, 2021 John Carey 1942 Views electric car, ev, lithium iron, model 2, Tesla

There’s a more affordable Tesla on the way. From China. Best guesses are it will be called the Tesla Model 2, something Tesla chief Elon Musk has hinted at previously.

And the company is also planning a shift to an iron-based cathode chemistry for the cells in the battery packs of its least costly models.

News of a new model to be positioned beneath the Model 3, currently the company’s least costly car, emerged during an interview of Tesla China president Tom Zhu by the state-run news agency Xinhua Net. The interview, conducted in Chinese, was posted on Youtube with English sub-titles.

Discussing the new research and development centre Tesla is currently building in China, and the first outside of the USA, Zhu revealed its primary purpose.

“We will provide very good conditions to facilitate our R&D engineers working towards our ultimate goal,” Zhu said. The centre will have the capability to handle every step from conception to production.

“In the future we want to design, develop and produce an original model in China. It is manufactured here and sold to the whole world. This R&D centre is the starting point of the goal.”

Tesla is already exporting cars made at its big new Shanghai Gigafactory, including the recently updated Tesla Model 3.

The factory was built in only nine months during 2019, and the cars being produced in it are not only being exported to Australia. They’re also being shipped to other Asia-Pacific markets, and to Europe.

According to Zhu, the Chinese plant’s annual production capacity will be ramped up from 250,000 today to 450,000 during 2021. That high number is a hint to the affordability, and consequent popularity, of the cars it will produce.

A more affordable Tesla – the Tesla Model 2 – to slot beneath the existing Model 3, was mentioned by CEO Elon Musk during the company’s big Battery Day presentation late last year.

The use of lithium iron phosphate, or LFP, cathodes was one of the topics that came up during that wide-ranging event.

Now, during a recent Twitter discussion on battery resource availability, Musk said Tesla plans to shift all its less costly standard-range cars to iron cathode cells. The reason? Nickel is getting more expensive…

“Nickel is our biggest concern for scaling lithium-ion cell production. That’s why we are shifting standard range cars to an iron cathode. Plenty of iron (and lithium)!” Musk Tweeted.

John Carey

Grew up in country NSW, way back when petrol was laced with lead. Has written about cars and the car business for more than 35 years, working full-time and freelance for leading mags, major newspapers and websites in Australia and (sometimes) overseas. Avidly interested in core EV technologies like motors and batteries, and believes the switch to electromobility definitely should be encouraged. Is waiting patiently for someone to make a good and affordable EV that will fit inside his tiny underground garage in northern Italy, where he's lived for the past decade. Likes the BMW i3, but it's just too damned wide...