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Tesla TSLA Signs Long-Term Agreement for 4680 Cell with Lithium-Ion Battery Electrolyte Company

Tesla TSLA Signs Long-Term Agreement for 4680 Cell with Lithium-Ion Battery Electrolyte Company

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Tesla (NASDAQ: TSLA) signed an agreement last week for the long-term supply of electrolytes for lithium-ion batteries to its factories in Fremont, Austin, and Berlin, with Tinci's Jiujiang Tinci High-Tech Materials Division. Guangzhou Tinci Materials Technology announced this on November 6, reported Yicai Global. The contract does not stipulate a clear volume of purchases. The exact volume will be determined based on actual demand, Tinci said.

Tinci has four factories in China with a total production capacity of 50,000 tons of lithium battery electrolyte. In recent years, the company has been actively expanding its production of electrolyte for lithium storage batteries. The Jiangsu plant will produce 200,000 tons of electrolyte per year. Another plant will be built in Ningde, Fujian province, home to the Chinese lithium battery giant Contemporary Amperex Technology. In addition, the company is building a separately invested plant in the Czech Republic that will produce 100,000 tons of electrolyte for lithium batteries annually.

In September, Tesla announced the creation of a new 4680 battery cell and that it had already begun production. Manufacturing facilities at Kato Road, Fremont now require large quantities of materials for battery production. The factories under construction--Giga Berlin and Giga Texas--will also have their own battery production, so it is natural that Tesla is actively looking for and signing long-term contracts with material suppliers. These actions underline the manufacturer's commitment to massively boosting the production of batteries to power electric vehicles and homes--within Tesla's broader mission to accelerate the world's transition to sustainable energy.

H/T @ReflexFunds/Twitter

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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