A European service provider and researcher based in Croatia has shared that Tesla Inc. (NASDAQ:TSLA) Model Y and Model 3 units with LG Energy Solutions' China-made NMC (Nickel Manganese Cobalt) batteries are prone to ‘catastrophic' failure following the EV giant's $4.3 billion deal earlier this year.
Cell-Level Repair Not Possible In LG Packs
Taking to the social media platform X on Monday, EV Clinic shared that it was difficult to repair LG NCM811 batteries made in Nanjing on the models, "In over 90% of the cases we receive, cell-level repair is not possible on LG packs," EV Clinic shared, adding that the issue was far beyond restorable.
Tesla did not immediately respond to Benzinga's request for comment.
The issue illustrates a widespread degradation that appears to be across the modules rather than a single bad cell, with the workshop sharing that it had found LG cells showing extremely high internal resistance when compared to the Panasonic Holdings Corp (OTC:PCRFF) (OTC:PCRHY) counterparts.
"A failing Panasonic cell reaches ~28 mΩ, which is what LG cells measure when brand new," EV clinic shared in the post.
"At this moment, during ongoing experimental testing with real customers experiencing LG failures, we are losing over €20,000 (approximately $23,200) per month in operational time," the company said, adding that Panasonic batteries experience single-cell failure at 250,000 km.
The workshop said that it is difficult to explain the issue to customers, adding that it replaces LG battery packs with used Panasonic ones in extreme cases. It also shared that the "Estimated End-of-Life (EOL)" for Panasonic packs was approximately 400,000 km, while that of the LG NCM811 units from China was close to 250,000 km.
Tesla's New Battery Patent, Samsung Deal
The updates come as Tesla recently filed a patent with the USPTO, detailing new battery chemistry that promises better performance, efficiency, and thermal management with minimal degradation by using a different solvent. The patent showcased the battery with the new chemistry retained up to 99% capacity even after 3,500 hours of use.
Elsewhere, the company also signed a $2 billion deal with South Korea’s Samsung SDI. The agreement will see Samsung SDI supply energy storage system (ESS) batteries to the EV giant. Tesla recently reported a 44% growth in its Energy Storage business during its Q3 earnings call, making up for over $3.4 billion in revenue for Tesla.
Tesla scores well on the Momentum metric, while offering satisfactory Quality and Growth, but poor Value. Tesla also has a favourable price trend in the Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Price Action: TSLA surged 0.33% to $431.55 during Pre-market trading, according to Benzinga Pro data.
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