Tesla wins China approval to build Model 3 vehicles with LFP batteries

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. /Reuters

Tesla Inc has received government approval to build Model 3 vehicles in China equipped with lithium iron phosphate (LFP) batteries, a document on the Ministry of Industry and Information Technology website showed (

link in Chinese

).

Reuters exclusively reported in February that Tesla was in advanced talks to use LFP batteries from CATL that contain no cobalt - one of the most expensive metals in electric vehicle (EV) batteries - in cars made at its plant in China.

The document does not provide the name of the battery maker. Tesla did not immediately respond to a request for comment.

On Wednesday, the 9 percent surge in Tesla's shares moved Elon Musk's company even closer to displacing Toyota as the world's most valuable carmaker.

(With input from Reuters)