Key facts
- Slate's EV pickup truck will start at $24,950.
- The company switched from nickel-manganese-cobalt (NMC) to lithium-iron-phosphate (LFP) battery cells.
- The standard battery range increased from 150 miles to 205 miles.
- LFP batteries are approximately 40% cheaper than NMC batteries.
- Recent regulatory changes allow LFP batteries with Chinese-sourced materials to qualify for tax credits.
- Slate is using cell-to-pack technology for its battery construction.
Slate, an electric vehicle startup, has revised its battery strategy for its stripped-down EV pickup truck, aiming to lower costs and simplify its product. The company announced a starting price of $24,950, down from initial expectations, and a revised battery offering. Slate has eliminated the optional 240-mile battery pack and increased the standard pack's range from 150 miles to 205 miles.
The significant change involves switching from nickel-manganese-cobalt (NMC) battery cells to lithium-iron-phosphate (LFP) cells. While NMC batteries offer higher energy density for longer range, they are more expensive due to the cost of nickel and cobalt. LFP batteries, on the other hand, are about 40% cheaper, utilizing more accessible materials like iron. This cost advantage is crucial for Slate's strategy of offering an affordable EV.
Historically, the dominance of Chinese manufacturers in the LFP supply chain posed a challenge for U.S. automakers seeking to qualify for tax credits under the Inflation Reduction Act. However, recent legislative changes have eased these restrictions, making LFP batteries a viable option again. Slate is sourcing its LFP cells from Gotion, a Chinese company, with plans for the cells to be assembled at a factory in Illinois.
Another factor influencing the decision is the range typically associated with LFP batteries. While LFP packs are less energy-dense than NMC, most drivers do not require extremely long ranges, especially with the expansion of charging infrastructure. Modern LFP variations have narrowed the energy density gap, and automakers like Ford, GM, and Tesla are already incorporating them into their models. Slate is also adopting cell-to-pack technology, which integrates battery cells directly into the pack, further improving volumetric energy density and simplifying manufacturing for its compact truck.