Tesla in talks with China's EVE for low-cost battery supply deal -sources
- 4 years ago
Tesla Inc (TSLA.O) is in talks with Chinese battery maker EVE Energy Co (300014.SZ) to add the firm to its Shanghai factory supply chain, four people familiar with the matter said, as it seeks to boost procurement of lower cost batteries.
EVE makes lithium iron phosphate (LFP) batteries, which are cheaper to produce because they use iron instead of more expensive nickel and cobalt.
But LFP batteries generally offer a shorter range on a single charge than the more popular nickel/cobalt alternative.
EVE would become the second supplier of LFP batteries to Tesla after China's Contemporary Amperex Technology Co (300750.SZ) (CATL).
The talks are advanced and the Palo Alto, California-based company is seeking to finalise the partnership in the third quarter, said two of the people.
Shenzhen-listed EVE is running some final-stage tests of its products for Tesla, said one person.
Shares of the Chinese battery firm jumped more than 10% in afternoon trade on Friday following the Reuters report about the talks.
All sources declined to be identified as the discussions are private. Tesla and EVE did not reply to Reuters requests for comment.
Source: Reuters
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