Tesla Extends Deal with CATL for the Supply of EV Batteries

Tesla Extends Deal with CATL for the Supply of EV Batteries

Photo: China Daily

Chinese electric vehicle battery maker CATL says it has extended its battery deal with electric vehicle maker Tesla to 2025. Mutually beneficial cooperation will help the automaker achieve its goals for the global distribution of EVs.

On June 28, CATL announced in a stock exchange filing that it will continue to supply battery cells for Tesla. The batteries will be supplied for Model 3 sedans and Model Y SUVs produced at Giga Shanghai to December 2025, Reuters reported. The prolongation of cooperation will bring significant benefits for both parties, which continue their growth in the actively developing EV market.

CATL products are used in vehicles of almost all major global automotive brands. About one year ago, Tesla began using the Chinese manufacturer's battery in its electric vehicles produced at its Shanghai factory. Now the agreement has been extended by more than four years. Tesla and CATL executives are in constant dialogue to discuss promising technology innovations and cheaper batteries and electric vehicles, Zeng Yuqun said. “Elon talks about cost all day long, and I told him to be assured that I would have solutions,” he said. “We get along well. He’s a fun guy.”

CATL batteries could offer key benefits for Tesla in China, in particular, the potential to increase profitability and lower product prices in the world's largest electric vehicle market.

© 2021, Eva Fox. All rights reserved.


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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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