Home News China’s CATL Confirms Battery Supply Deal With Tesla

China’s CATL Confirms Battery Supply Deal With Tesla

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Chinese electric vehicle battery manufacturer CATL has secured a battery source agreement with Tesla, Reuters reports.

A stock market submitting from CATL revealed that Tesla will determine the number of batteries it purchases involving July 2020 and June 2022. CATL added that the agreement doesn’t even enforce limitations on Tesla’s buy quantity.

Speaking during the electric automaker’s recent Q4 earnings call, chief executive Elon Musk supported Tesla’s battery supply agreements using CATL and LG Chem are in a smaller scale compared to its long-standing relationship with Panasonic. Tesla secured a similar battery supply agreement with LG Chem at August 2019.

Read Also: Bosch Strikes EV Battery Supply Deal With China’s CATL

It is understood that the Californian electric carmaker is looking to build up a local source of batteries in China which will induce the vehicles fabricated in its Shanghai factoryoutlet. This will enable Tesla to avoid shipping over Panasonic batteries from the company’s Gigafactory from Nevada.

Tesla plans on delivering at least 500,000 vehicles this year but is expected to actually build a significant great deal longer, Electrek reports. Securing battery supply in the Shanghai Gigafactory will help its production objectives are achieved by the auto manufacturer.

Soon after the very first Tesla Model 3s built at the company’s mill in Shanghai reached the hands of consumers, Musk verified the website will also construct the Tesla Model Y which the brand anticipates to outsell the Model 3, Model S, and also Model Y combined. The mill currently has a production capacity of 150,000 units per year but this will grow to about 250,000 vehicles when creation of the Model Y begins.

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