Taylor Ogan, chief executive of Snow Bull Capital, a U.S. investment firm, has been bullish on Tesla and its stock. Lithium iron phosphate batteries are cheaper, safer, and chemically capable of being 100 percent recharged for longer battery life, and electric car owners don't have to worry too much about performance degradation, Ogan commented.
Ogan adds that lithium iron phosphate batteries have the added benefit of better recycling of waste. There are no ethical issues with finding the raw material for lithium iron phosphate (mining other lithium battery electrode minerals has been controversial in the past).
Some electric car makers have used lithium-iron-phosphate batteries made by Chinese companies in the past. They are now fully capable of being used in mainstream electric vehicles, Mr. Ogan said.
Tesla and CATL, a leading Chinese LiFePO4 Battery manufacture, have reportedly signed an agreement to purchase lithium batteries.