In a recent development, American Automobile giant Tesla secured a battery supply deal with China’s biggest manufacturer, CATL. Initially, the company is expected to supply cells to the Shanghai Gigafactory 3, and further, it might expand to other factories as well. Before the agreement, Panasonic was the only company to supply cells for Tesla. From the inception of the company, Panasonic was the sole exporter of cells for Tesla.
Previously, Tesla used LG and Samsung battery cells for its energy storage products, but Panasonic was the only company to produce the cells for Tesla vehicles. The news about the deal was in media since March, but now Bloomberg revealed the final deal. The press also revealed that the official confirmation from the company might come in 2020. Previously, the CEO of Tesla visited Shanghai to meet Zeng Yugun, the Chairman of CATL, to discuss the details of the deal. According to media reports, their meeting lasts for 40 minutes, and they reach a consensus.
The Chinese company will export the cells for Tesla’s Model 3 electric cars- build in Gigafactory 3. Both companies also discussed future global shipments. BMW also signed a deal worth one billion USD with the Chinese company.