Tesla is reportedly planning to enhance its China-made Model 3 with a new battery pack provided by CATL, as per the latest report from 36Kr. The upgraded version of the base model, equipped with rear-wheel drive, will feature a 66kWh M3P lithium iron phosphate battery from CATL, surpassing the previous 60kWh capacity. Sources suggest that this battery pack will not only be used in the updated Model 3 but also in future iterations of Tesla's Model Y.
In 2022, the combined sales of China-made Model 3 and Model Y reached a total of 442,000 units, with the Model 3 accounting for 28% (125,000 units) based on PTI data. From January to May 2023, domestic sales of Model 3 and Model Y amounted to 220,000 units, with the Model 3 representing 30% (67,000 units) of the total, according to data from the China Association of Automobile Manufacturers.
Reuters reports that Tesla’s Shanghai factory currently has an annual production capacity of approximately 1.25 million units for Model 3 and Model Y. Assuming that Model 3 sales account for 30% and the base version constitutes 80% of the total, it would require 19.8GWh of batteries and 300,000 units, along with 144,000 tons of lithium iron manganese cathodes. If both the base versions of Model 3 and Model Y adopt the M3P battery, accounting for 80% of the total, it would translate to 1 million units and 660GWh of batteries, necessitating 145,000 tons of LiFeMn cathodes.
Dynanomic, a company specializing in LiFeMn cathodes, has reportedly received confirmation from downstream customers in early 2023 and has already shipped small quantities. Additionally, 110,000 tons of nominal capacity have already been put into operation. Given these circumstances, we are optimistic about the competitiveness of Dynanomic’s LiFeMn cathode and anticipate that the company will be the first to benefit from Tesla's upgrade to the M3P battery.
