Automaker Slate Adopts Lower-Cost Battery Chemistry After U.S. EV Tax Credit Repeal

Michigan-based Slate introduced an electric truck last week with a base price just under $25,000. The vehicle uses a lithium iron phosphate battery pack assembled by a U.S. subsidiary of a Chinese firm at a plant in Illinois. The battery chemistry was developed in the United States but scaled primarily in China, where 97.8 percent of global LFP cathode production occurs.

The packs cost less than nickel-manganese-cobalt alternatives and offer greater stability, though they provide lower energy density.

Congress eliminated the federal EV purchase tax credit last summer. The credit had required battery materials to come from the United States or allied nations and had restricted content from China. Without the credit, manufacturers no longer face penalties for using foreign-sourced battery components.

Several companies have since increased orders for LFP cells for both vehicles and stationary energy storage. LG Energy Solution operates eight North American plants and plans to produce 50 gigawatt-hours of LFP capacity this year. Some lines originally intended for vehicle batteries have been shifted to energy-storage production.

A company spokesman said the Slate battery pack meets targets for durability, reliability, and affordability. The truck is rated at 205 miles of range. Bob Lee, president of LG Energy Solution in North America, stated that the shift toward LFP chemistry reflects both consumer demand and recent regulatory changes.

He added that long-term domestic production will require additional factory investment and workforce training. The same statement noted that policy stability across administrations would help manufacturers plan large-scale capital projects.