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There are rumors that CATL may expand its factory near Tesla’s Shanghai plant, further strengthening this close supply chain relationship. This physical closeness arguably gives Tesla an almost strategic advantage over competitors in securing batteries at competitive prices.
The Technology Behind the M3P Batteries
The M3P batteries are a modified version of LFP chemistry, with the iron in the lithium iron phosphate replaced by a mix of magnesium, zinc, and aluminum. This chemistry promises to deliver twice the energy density of standard LFP batteries, although many questions remain about manufacturing costs, scalability, and commercial readiness.