Tesla has reportedly secured a battery supply deal with CATL, China's largest battery manufacturer, to supply cells for Gigafactory 3 in Shanghai and potentially expanding to other production facilities.
As of now, Panasonic is the only approved battery cell supplier for Tesla's vehicles, but things are changing fast.
Since Tesla's inception, Panasonic has always been the automaker's sole battery supplier for vehicles with the very small exception of a short-lived.
Panasonic made cells in Japan and exported them to California for Tesla's Model S and Model X programs, while the two companies partnered to make the cells for Model 3 at Gigfactory 1
Over the last few years, Tesla started using battery cells from Samsung SDI and LG Chem for its stationary energy storage products, but Panasonic has always been the exclusive supplier of the automaker with battery cells for its e lectric vehicles.
Earlier this year, we heard that Tesla made a battery supply deal with LG Chem for the Model 3 produced at Gigafactory 3 and now it looks like they will split the capacity with CATL.
Tesla was in talks with CATL, but Bloomberg is now reporting that the two companies have "reached a preliminary agreement."
Bloomberg reports that the official agreement is not definite yet Tesla Chief Executive Officer Elon Musk traveled to Shanghai in late August and met with CATL Chairman.
Tesla CEO Elon Musk traveled to Shanghai in late August and met with CATL Chairman Zeng Yuqun for about 40 minutes, according to the people, who asked not to be discussed private deliberations.
The 'preliminary agreement' is for battery cells to be installed in Model 3 vehicles to be built at Gigafactory 3 in Shanghai, but they are also reportedly "separate discussions underway on a potential global supply contract."
CATL has been expanding its reach and announcing several new battery factories to support major automakers.
The Chinese company signed a National Electric Vehicle Sweden (SAV) successor order to enable the production of hundreds of thousands of all-electric cars per year.
BMW thus signed a $ 1 billion battery supply contract with them to support their future EV production
They have also secured a battery supply agreement with Honda for about 1 million electric vehicles.
CATL reportedly has a current annual production of 17.5 GWh and they are pl GWh to come online as soon as next year.
Tesla could be a single battery cell supplier
I still think that Tesla is planning to move into the battery cell manufacturing space in a big way next year, but it makes sense for the company to still build a
Tesla is going to need an incredible amount of battery cells over the next few years and while I think they are longing for most of those cells are going to be built internally buying billions of dollars worth of battery cells in the next few years.
FTC: We use income earning auto affiliate links. More.
Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.