<article><p class="lead">Chinese auto manufacturer BYD and US electric vehicle (EV) producer Tesla have released all-electric vehicles that use lithium iron phosphate (LFP) batteries.</p><p>BYD has released the Qin and Qin Pro, which has a driving range of 520km. The driving range for Qin was undisclosed. Tesla has released a new model for its Model 3 series, with more details unavailable, according to the latest declaration catalogue issued by China's ministry of industry and information technology (MIIT). </p><p>MIIT's declaration catalogue includes 12 new energy vehicles (NEVs) that use LFP batteries, accounting for 24pc of a total of 49 NEVs. </p><p>Suppliers of the LFP batteries are BYD, CATL, Gotion High-Tech, Penghui, Anchi New Energy and Suzhou KeYi New Power. BYD will also provide LFP batteries to GAC and Changan Ford, in addition to feeding its own EV production. </p><p>LFP batteries are promoted as having better safety performance and lower average costs, although its energy density and EV driving ranges are shorter than nickel-cobalt-manganese/nickel-cobalt-aluminium (NCM/NCA) batteries. Many Chinese producers have put more effort into developing LFP batteries amid lower government subsidies.</p><p>China's new installed capacity for LFP batteries used in NEVs reached 0.9GWh last month, up by 74.4pc from March but down by 39.2pc on a year earlier. The newly installed capacity for NCM/NCA power batteries was 2.6GWh in April, up by 17.8pc from March but down by 30.4pc from a year earlier.</p><p>Lithium carbonate is the main feedstock for LFP batteries, while lithium hydroxide is largely used to make NCM/NCA batteries.</p><p>Argus last assessed the range for 99.5pc grade lithium carbonate at 42,000-46,000 yuan/t ($5,884-6,444/t) ex-works on 21 May, down by Yn1,000/t from the low end of the 19 May range. Demand from the power battery sector is recovering, while producers were unwilling to reduce offer prices because of firmer production costs. Argus assessed prices for 56.5pc grade lithium hydroxide at Yn51,000-56,000/t ex-works on 21 May, down by Yn2,000/t from 19 May.</p></article>
