Tesla’s main reasons for using BYD batteries include cost advantages, performance advantages and supply chain stability.
First, BYD’s blade batteries use lithium iron phosphate technology, which is cheaper than ternary lithium batteries. Due to the low raw material cost of lithium iron phosphate, and skipping the “module” step in the group, the volume utilization rate is improved, so that more cells can be loaded in the same space, thereby increasing the power storage 1. In addition, the high temperature resistance and life stability of lithium iron phosphate batteries also make them have a high cost performance .
Second, BYD’s batteries also have significant advantages in terms of performance. Lithium iron phosphate batteries are resistant to high temperatures and have a more stable life, while ternary lithium batteries perform better at low temperatures. Tesla can effectively address these issues by adopting battery heating technology and optimizing the battery management system (BMS) 1. Byd’s battery technology has been recognized by Tesla, Tesla’s use of BYD batteries can improve the market competitiveness of its products .
Finally, from the perspective of the supply chain, BYD as the world’s first pure electric vehicle sales brand, its battery technology has been widely recognized. Tesla’s use of BYD batteries can reduce supply chain risks and ensure the stability and reliability of battery supply . In addition, localized procurement also helps to reduce costs and avoid tariffs, reducing logistics transportation expenses 。
Tesla has recently started using BYD blade batteries for its Model Y electric crossovers produced at the Berlin gigafactory. This change has led to faster charging speeds. While the exact reasons behind this decision are not fully disclosed, it appears that BYD’s batteries offer advantages in terms of performance and cost.
