Tesla has been making progress at the Giga Berlin facility, where it builds both long-range and performance variants of the Model Y. According to a recent report from the German website teslamag.de, a third variant is on its way with a never-before-seen battery pack. BYD will reportedly supply the ‘structural battery pack‘ used inside the cheaper Model Y that will be made in Berlin.

Although it’s not officially confirmed by the manufacturer, Tesla Model Y with a BYD structural battery pack has received its approval of type from the EU. This means that Tesla could technically start selling the cheaper Model Y in Europe right away. According to documents issued, Tesla implemented a structural battery that has a 55-kWh energy capacity. The new pack gives Model Y a range of 440 kilometers. The range improves further, thanks to a more compact battery that reduces vehicle’s overall weight around 66 kg.

BYD Takes A Big Win Over Rival Battery Maker CATL

BYD scored a big win over its rival CATL. Thanks to its unique battery cell design called ‘Blade Battery’, Tesla can use the cells BYD supplies and create an alternative to its 4680-cell structural battery pack. The original Model Y with the structural pack has a capacity of 75 kWh, while BYD’s pack offers only around 55 kWh. Due to a significant change in the pack design, CATL partially lost one of its most valuable customers. If Tesla starts to use structural packs in Giga Shanghai, BYD will be the go-to supplier for structural pack-proved LFP cells.

Tesla has been using LFP cells inside cheaper models for a while. But the new Model Y with the structural pack has been using Tesla’s own 4680 cells exclusively. Giga Berlin will be the first factory to use BYD’s lithium-ion battery cells. And the Berlin-made standard range Model Y will become the cheapest EV option Tesla offers to European customers.