Tesla seeking second supplier for LFP batteries in China: Report

In the all important quest for battery cells, Tesla is reportedly considering adding a second supplier for its factory in China.

According to four sources familiar with the matter, Tesla is in talks with Chinese battery maker EVE Energy Co. to add the company to its Giga Shanghai supply chain.

The potential deal has been in the works for several months. EVE is reportedly already in the final stage of tests for its battery cells that would be provided to Tesla.

EVE manufactures lithium iron phosphate (LFP) batteries, a type of battery that Tesla first introduced to the Standard Range Plus (SR+) Model 3 in China last year. The batteries contain no cobalt, one of the most expensive elements that make up the current Nickel Manganese Cobalt (NMC) batteries.

Elon Musk said last year the automaker will be switching all standard range cars to LFP batteries. Recent hints on Tesla’s website indicate Canada may be the next market to receive them.

Tesla has also recently started manufacturing their Megapack battery storage systems with LFP cells.

Source: Reuters

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