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

  • Robert Cattle

    Having been in lithium batteries since the 1970s it’s fun to see the name CATL
    One battery type should be the GABANO if you know your French SAFT lithium batteries!

    • chickeee

      SAFT batteries are very reliable

      • Robert Cattle

        Jean Paul Gabano SAFT Poitier 1970/80s was responsible for the most high quality and reliable lithium batteries…..not to be forgotten.

  • RJ

    Will these batteries from CATL be comparable to the Panansonic ones from GigaFactory 1?

    Same Cell Structure
    Same Cell Chemistry
    Same Cell Density
    Same Cell Longevity
    Same Cell Price

    If so how will Intellectual Property Rights be maintained. That is Catl not using the knowledge to produce the same cells for other Manufacturers?

    Or will they be inferior ones giving less miles, range, performance, longevity?

    • chickeee

      they will make the batteries according to Tesla’s requirements same as Panasonic does in Nevada.