Tesla signs new long-term battery cell supply agreement with CATL

As EVs move into mass production, the industry is going to need an insane—make that ludicrous—amount of batteries. Trendsetter Tesla long relied solely on Japan’s Panasonic for cells, but around the time production began at Gigafactory Shanghai, it started working with other suppliers, including Korea’s LG and China’s CATL.

Tesla and CATL signed a supply agreement in February 2020, and now the companies have inked a new Production Pricing Agreement that will extend the relationship to December 2025. We’ve seen no details of what capacities are expected, or what battery chemistries are to be supplied.

CATL has quickly grown into the largest battery cell manufacturer in China, and is setting “a blistering pace of expansion.” It supplies several of China’s numerous EV producers, and is building new battery factories around the world to support EV production in other markets.

CATL’s comment on the current contract: “The signing of the agreement represents Tesla’s further recognition of the product quality and production capacity of the company’s batteries, which is conducive to strengthening the long-term and stable cooperative relationship between the company and Tesla, and in line with the interests of the company and its shareholders.”

Source: Electrek