Tesla's Troubles with LG Batteries: An In-Depth Look at Failures
Tesla's Battery Concerns
Recent insights have emerged from a European service provider that sheds light on potential issues with Tesla electric vehicles. The report focuses on the Tesla Model 3 and Model Y units that use NMC batteries manufactured by LG Energy Solutions. These vehicles are reportedly facing severe failures, which have been described as 'catastrophic.' These revelations follow Tesla's significant deals to secure battery supplies, particularly one valued at $4.3 billion earlier this year.
Challenges with LG Battery Repair
According to the findings shared on social media, a notable service provider expressed that the LG NCM811 batteries, particularly those produced in Nanjing, present substantial repair challenges. EV Clinic mentioned that most of the cases involve instances where cell-level repairs are not feasible. This represents a significant barrier, as it highlights a broader systemic issue rather than isolated cell failures.
Internal Resistance Comparison
It's noted that the degradation of these LG cells is widespread, impacting overall module performance. In a comparison, it was found that LG cells exhibit excessively high internal resistance levels when stacked against counterparts from Panasonic Holdings Corp. For instance, failing cells from Panasonic reach approximately 28 m?, while new LG batteries measure similarly, indicating a concerning lack of longevity and performance.
Financial Implications
The financial ramifications of these issues are pronounced, with the service provider reporting losses exceeding €20,000 (around $23,200) monthly due to operational downtime associated with LG battery failures. Panasonic batteries, on the other hand, reportedly only experience single-cell failures after reaching 250,000 kilometers of use.
Comparative Lifespan of Battery Packs
The establishment detailed that when faced with LG failures, it has resorted to replacing these battery packs with used Panasonic models, which is not an ideal solution but a necessary measure in severe cases. Moreover, the estimated end-of-life (EOL) for Panasonic batteries spans about 400,000 kilometers, significantly outpacing the LG NCM811 units, which fall short at approximately 250,000 kilometers.
Technological Advancements by Tesla
In light of the ongoing battery issues, Tesla remains proactive in advancing battery technology. Recently, the company submitted a patent to the USPTO that outlines a new battery chemistry designed to enhance performance, efficiency, and thermal management. This new formulation aims to retain up to 99% capacity even after extensive use, potentially remedying some of the concerns surrounding battery longevity.
Collaborations for Better Battery Technology
In a strategic move, Tesla also signed a $2 billion agreement with Samsung SDI to secure an additional supply of energy storage system batteries. The collaboration comes at a time when Tesla has reported a remarkable 44% growth in its energy storage division, contributing significantly to its revenue stream.
Current Market Performance
Tesla's shares have shown a slight increase, with TSLA rising by 0.33% to trading at $431.55 during pre-market sessions. The company's performance metrics indicate strong momentum while still presenting mixed signals regarding value.
Frequently Asked Questions
What issues are Tesla Model Y and Model 3 facing?
They are reportedly experiencing catastrophic failures related to the LG-made NMC batteries.
Why are LG batteries hard to repair?
Cell-level repairs are largely deemed impossible in most cases encountered by service providers.
What are the financial impacts of battery failures?
Operational losses of over €20,000 (approximately $23,200) are reported monthly due to resources allocated for these battery failures.
How does Panasonic's battery performance compare?
Panasonic batteries typically last longer, reaching about 400,000 kilometers before experiencing single-cell failures.
What new developments is Tesla pursuing in battery technology?
Tesla is developing a new battery chemistry through a recent patent aimed at improving efficiency and longevity.
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