Who does Tesla get their lithium batteries from?

Tesla sources lithium batteries primarily from a diversified supplier network including Panasonic, CATL (Contemporary Amperex Technology Co. Limited), and LG Energy Solution. Panasonic remains a long-standing partner, supplying cells for models like the Model S and Model 3, while CATL and LG provide lithium iron phosphate (LFP) and nickel-based batteries for Chinese-made vehicles. This multi-supplier strategy optimizes cost, regional production efficiency, and technology adaptation.

What is Panasonic’s role in Tesla’s battery supply chain?

Panasonic has been Tesla’s foundational battery partner since 2009, co-developing 18650 and 2170 cylindrical cells for early models. Their joint Gigafactory in Nevada scales production, achieving cost efficiencies through vertical integration.

Panasonic’s collaboration with Tesla centers on high-energy-density nickel-cobalt-aluminum (NCA) chemistry, which balances performance and longevity. The 2170 cells used in Model 3 and Model Y offer 5–10% higher energy density than the older 18650 cells, enabling longer ranges. Pro Tip: Avoid exposing NCA batteries to frequent full discharges—maintaining a 20–80% charge window extends cycle life. For example, the Model S P85D’s 7104-cell battery pack uses Panasonic’s NCA chemistry to deliver 265 miles of range. However, thermal management remains critical; Tesla integrates liquid cooling and compartmentalized modules to mitigate overheating risks.

How do CATL and LG Energy Solution fit into Tesla’s strategy?

CATL and LG supply LFP and NCM batteries for Tesla’s Shanghai-made vehicles, reducing costs and diversifying chemistry options. CATL’s prismatic LFP cells prioritize safety and affordability.

CATL’s lithium iron phosphate (LFP) batteries, used in base Model 3 and Model Y variants, trade 15–20% lower energy density for superior thermal stability and lower cobalt dependency. LG’s nickel-cobalt-manganese (NCM) cells, meanwhile, offer higher energy density for performance-oriented trims. Pro Tip: LFP batteries tolerate full charging cycles better than NCA/NCM—ideal for daily commuters. For instance, the Shanghai Gigafactory leverages CATL’s LFP cells to cut battery costs by ~20%, passing savings to consumers. Transitional phrases like “Beyond chemistry differences” highlight Tesla’s regionalized approach: U.S. models favor energy density, while Chinese production emphasizes cost-efficiency.

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