- Skyrocketing nickel prices shift Tesla to focus more on LFP batteries
- Tesla Model 3 Uptake Predictions
EV uptake in Australia has really taken off in 2022 and the Tesla Model 3 has led the pack. Despite a slump in April, more than 4,400 new Tesla Model 3s have been sold in Australia so far this year, and a deep dive into new data reveals some interesting observations.
Latest data from carloop on Australia’s leading EV, the Tesla Model 3 shows that 81.3% of all Teslas deliveried to Australia in 2022 had a LFP (Lithium Iron Phosphate) battery pack.
These batteries are used in the 2022 Tesla Model 3 RWD model which accounted for over 3,500 cars. This variant by far is the most popular EV in Australia this year.
The remaining cars had the NCM chemistry of batteries which are found in Tesla Model 3’s Long Range and supercar beating Performance models.
Skyrocketing nickel prices shift Tesla to focus more on LFP batteries
Tesla has been pretty open about the shift to using more LFP battery packs in 2022. In the first Quarter of 2022, half of all global battery deployments in Tesla vehicles and Megapack products were utilsing the LFP battery pack.
Some of the reasons behind the shift have been the skyrocketing nickel prices and conflict in Ukraine. Prices rose as high as $100,000 per tonne back in March.
These battery packs contain no Nickel and are supplied by CATL for the Australian market. A key advantage of these batteries is the ability for customers to charge their cars up to 100% with minimal degradation to the battery pack. In turn, these batteries will provide a longer range over it’s lifetime.
This means that most Model 3 owners have less to worry about when it comes to leaving their cars plugged in overnight. In the morning, they are leaving home with a fully charged battery. (Editor’s note: And it also means some Tesla Model 3s spending an hour or more at public charging stations).
Tesla Model 3 Uptake Predictions
As of May 2022, Tesla Model 3 RWD still qualifies for an EV subsidy in many states and territories. These subsidies will continue to drive demand.
With rising petrol prices and fuel excise reduction set to come off shortly, many owners looking to make the switch to an EV will seriously consider a Tesla Model 3 in absence of the Tesla Model Y.
LFP battery equipped Tesla Model 3 RWD has made more than 80% of the cars delivered in Australia so far this year. This will continue for the remainder of the year and with recent price increases to Tesla Model 3 in March, the demand for the RWD is only set to grow which is great news for EV uptake for the rest of 2022.