Tesla Inc wants to shift to a less expensive battery for its electric vehicles, but first needs to figure out how to overcome political tensions to get a Chinese partner to build the iron-based batteries near its U.S. factories.
The world¡¯s two biggest economies have yet to resolve disputes over tariffs, intellectual property rights and Chinese incursions into Taiwan¡¯s air defense identification zone. And China¡¯s sweeping regulatory crackdown, aimed largely at the technology sector, could pose yet another hurdle.
China adopted the technology early and makes 95% of the world¡¯s Lithium Iron Phosphate (LFP) batteries, but key patents expire soon and Tesla said it plans to adopt LFP batteries in its fleet of standard-range vehicles globally and move battery production closer to its factories.
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