Tesla Signs Supplier Agreement with Chinese Battery-maker CATL

Tesla China-made Model 3 vehicles during a delivery event at its factory in Shanghai (Source: Reuters)

On February 3, Chinese battery manufacturer CATL announced that it has signed a two year supply agreement with Tesla effective between July 1, 2020 and June 30, 2022.

Tesla recently successfully signed supplier agreements with South Korea’s LG Chem Ltd. and China’s CATL. However, Tesla CEO Elon Musk noted during a conference call in late January that the agreements with both companies were at a relatively small scale.

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Tesla’s main battery supplier currently is Japan’s Panasonic. The American EV-maker has a long-standing agreement with the company.

According to CATL, Tesla will determine the battery purchase volume according to its own needs, since the agreement does not restrict the purchase volume.