CATL LFP Batteries – Expiring Patents
CATL is having its LFP battery patents expire and this will be a good thing for all EV auto makers, especially Tesla. Tesla is going to slowly unwind itself from using CATL batteries and begin to produce its own in-house.
Tesla can make its own cells and has the chance to reduce its Cost Of Goods Sold by about 25% – if you take the $45 per KWh wholesale markup CATL is earning from Tesla.
CATL currently controls about 1/3 of the global battery market and is on good terms with Tesla, however. Tesla could keep its partnership and ask for lower prices on the batteries. To reach 20 million vehicles per year, Tesla is going to have to make a lot of its own batteries, or continue to partner with CATL.
LFP batteries are used only for standard range vehicles that don’t need a lot of performance and power. My own Tesla Model 3 RWD has LFP batteries and…
CATL LFP Batteries Have Expiring Patents: Why This is Good for Tesla
