China limits LFP batteries from not being put into cars that aren't made in China (they literally can't export them unless they are in a vehicle), and they have a distinct cost advantage even if they are heavier. Tesla is using those batteries to get the Model 3 there to $30k (which is the limit to qualify for the current subsidies in China).
It is a brilliant move by China: they have the tech, no one else seems to have it, and by not exporting it outside of completed cars, they can get an advantage.
> While the cars look identical to those still made in America, there is one key difference: the batteries.
> Chinese Model 3s use lithium-iron phosphate (or lithium ferro phosphate/LFP) batteries instead of the previous lithium nickel cobalt aluminium oxide (NCA) batteries.
It is a brilliant move by China: they have the tech, no one else seems to have it, and by not exporting it outside of completed cars, they can get an advantage.