Tesla Receives Go-Ahead From China to Use Cheaper Batteries in Model 3 Vehicles

Tesla (NASDAQ: TSLA) reportedly has received approval to manufacture its Model 3 vehicles with lithium iron phosphate batteries (LFP). According to Reuters, a document posted on the website of the Ministry of Industry and Information Technology acknowledges the approval; however, it doesn't indicate the name of the battery maker.

One of the the allures of LFP batteries is that they don't use cobalt, an expensive component of other lithium batteries, the mining of which is oftentimes draws scrutiny from human rights organizations. In its recently released Impact Report, Tesla stated that its "batteries use nickel-rich cathode materials which contain less cobalt than other widely used cathode chemistries in the industry, with our ultimate goal being to eliminate cobalt completely from our cells."

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