Megapack uses cobalt batteries

Is Tesla switching to lithium phosphate battery cells for Megapack energy storage?

Tesla is switching to lithium iron phosphate (LFP) battery cells for its utility-scale Megapack energy storage product, a move that analysts say could signal a broader shift for the energy storage industry.

Will Tesla make a megapack with iron-based battery cells?

On the energy storage front, Tesla will now make its Megapack with iron-based battery cells. The Megapack is a three-megawatt-hour (MWh) battery that stores large amounts of electricity on the grid. Tesla's website advertises the Megapack as being applicable for "giga-scale projects" that can supply thousands of homes with electricity.

Why did Tesla switch to cobalt-free LFP cells in the Megapack?

Tesla switched to using cobalt-free LFP cells in the Megapack in 2021, allowing them to reduce their costs and at the same time ramp up production of the Megapack without impacting their supply of nickel-based battery cells that go into their high-volume cars.

Will LFP batteries for the Megapack trigger an energy storage Revolution?

Such a change may seem minor, but the advantages presented by LFP batteries for the Megapack are notable, so much so that it may very well trigger an energy storage revolution of sorts. “Tesla announced that Megapack will be using LFP cathode batteries, similar to the entry-level Made-in-China Model 3/Ys.

Will Tesla's Megapack use LFP cathode batteries?

“Tesla announced that Megapack will be using LFP cathode batteries, similar to the entry-level Made-in-China Model 3/Ys. This is significant, as Tesla ramps up their grid-scale energy storage product without drawing further on an already supply-constrained nickel-based battery production capacity used in 2170s,” the analyst wrote.

Why did Tesla switch to cobalt free batteries?

The change was noted by Canaccord Genuity analyst Jed Dorsheimer, who said the shift to the cobalt free batteries could reduce costs and ease demand for the supply-constrained nickel-based batteries. “Tesla announced that Megapack will be using LFP cathode batteries, similar to the entry-level Made-in-China Model 3/Ys.