Tesla to buy batteries from CATL for China market

Recently, Tesla has indicated that it plans to diversify its battery supply for the Asian market, moving away from its near-total reliance on Panasonic. Now Contemporary Amperex Technology (CATL), China’s largest EV battery-maker, has confirmed the signing of a two-year supplier agreement with Tesla. The agreement does not specify the volume of cells to be sold.

Panasonic has said it would not manufacture cells for Tesla in China, which left the automaker with the options of shipping Panasonic batteries from the Nevada Gigafactory or finding a local supplier.

Tesla, said during last week’s earnings call that its agreements with LG Chem and CATL were of a smaller scale than the existing Panasonic partnership.

Sources: Reuters, Benzinga