Slate, known for its affordable electric pickup, has replaced its planned nickel-manganese-cobalt battery with a lithium-iron-phosphate pack that extends range to 205 miles while dropping the optional longer-range version. This shift reflects evolving battery market trends and the pursuit of cost-effective EV solutions.
- Slate eliminates optional 240-mile battery, boosts standard range to 205 miles
- LFP cells are ~40% cheaper than previous NMC chemistry
- US tax law and cell-to-pack tech now support LFP's wider adoption
What happened
Slate announced a significant update to its electric pickup, replacing its initial nickel-manganese-cobalt (NMC) batteries with lithium-iron-phosphate (LFP) cells. This change not only removed the optional 240-mile pack but also raised the standard battery range from 150 to 205 miles. The new battery packs will be manufactured using cells sourced from a Chinese supplier, Gotion, at a factory in Illinois.
Originally, Slate had planned to use NMC chemistry due to its higher energy density, which generally allows longer driving ranges. However, the high costs tied to nickel and cobalt materials made this approach more expensive. The switch to LFP batteries, which rely on more abundant and cheaper materials like iron, slashed battery costs by approximately 40%. This adjustment aligns with Slate’s goal to offer the cheapest EV truck in the U.S. market.
Why it matters
The battery swap highlights shifting dynamics in the EV battery industry, particularly in affordable vehicle segments where cost and practicality outweigh maximum range. LFP batteries have risen as a preferred option for budget-conscious models, facilitated by evolving supply chains and battery technologies that improve range and durability despite lower theoretical energy density.
U.S. regulatory changes, including the removal of certain tax credit restrictions under the Inflation Reduction Act, have allowed automakers to source LFP batteries from international suppliers, including Chinese manufacturers, without losing eligibility for incentives. Further, the adoption of cell-to-pack manufacturing techniques enhances volumetric energy density and simplifies production, which is especially advantageous for smaller vehicles like Slate’s pickup.
What to watch next
Industry observers will monitor how Slate’s LFP battery strategy influences consumer adoption of lower-cost EV trucks and whether other manufacturers accelerate their own transitions to LFP chemistry for budget models. As charging infrastructure expands and range anxiety decreases, demand for ultra-long range EVs may moderate in favor of affordability and reliability.
Additionally, Slate’s partnership with a China-based battery supplier producing cells in the U.S. marks a notable development in domestic battery manufacturing and supply chain strategies. Future regulatory changes or shifts in international trade relations could impact this dynamic. Meanwhile, automakers like GM exploring alternative battery chemistries may diversify market options beyond LFP’s niche in cost-sensitive EVs.