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Tesla secures transaction to supply battery cells with CATL, says report



Tesla has entered into a battery supply deal with CATL, the largest battery manufacturer in China, to supply cells for Gigafactory 3 in Shanghai and potentially expand to other manufacturing facilities.

Panasonic is currently the only approved battery supplier. for Tesla cars, but things are changing fast.

Since the creation of Tesla, Panasonic has always been the only car battery supplier with very few exceptions to the short-lived Tesla Roadster 3.0 battery replacement program.

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 produce Gigfactory 1

Model 3 cells in Nevada.

Over the last few years Tesla started using batteries from Samsung SDI and LG Chem for its stationary energy storage products, but Panasonic always had the exclusive contract of supplying the automaker with batteries for its

. on the way to change.

Earlier this year, we heard that Tesla was entering into a battery delivery deal with LG Chem for the Model 3, manufactured in Gigafactory 3, and now it looks like they will split capacity with CATL.

Since March, we hear that Tesla has negotiated with CATL, but now Bloomberg reports that the two companies have "reached a preliminary agreement."

Bloomberg reports that the formal agreement is still uncertain. and is not expected to continue until mid-2020:

"After months of negotiations, the companies made a non-binding deal after Tesla CEO Elon Musk left for Shanghai in late August and met with CATL chairman Zeng Yukong in about 40 minutes, according to people who asked not to be baptized when discussing private discussions. Although the final agreement is expected to be signed by mid-2020, there is no guarantee that it will happen, people said. "

The 'preliminary agreement' is to have the battery cells installed in Model 3 vehicles to be built at Gigafactory 3 in Shanghai, but they also 'have separate discussions about a potential global supply contract.'"

CATL has been expanding recently and is announcing several new battery factories in support of major automakers.

A Chinese company has signed a delivery contract with a successor of SAAB National Electric Vehicle Sweden (NEVS) to enable the production of hundreds of thousands of all-electric vehicles annually.

BMW also signed a $ 1 billion battery supply contract with them to support their future production of EVs.

They have also signed a battery supply agreement with Honda for about 1 million electric vehicles.

CATL has a current annual production of 17.5 GWh and they are calling for a new factory with a capacity of 24 GWh to be released online immediately next year.

Take by Electrek

Interestingly, in a few months to a year Tesla can switch from one battery supplier to its car to have 3 and even possibly make its own cells.

I still think Tesla plans 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 solid supply chain with other suppliers.

Tesla will need an incredible amount of batteries over the next few years and while I think in the long term most of these cells will be built internally, I think they will still be buying billions of dollars worth of batteries over the next few years.

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