Tesla in talks with Lishen over Shanghai battery contract – Report
Reuters reported that Tesla Inc has signed a preliminary agreement with China's Tianjin Lishen to supply batteries for its new Shanghai car factory, as it aims to cut its reliance on Japan's Panasonic, two sources with direct knowledge of the matter said.
The companies had yet to reach a decision on how large an order the U.S. electric car company would place, and Lishen was still working out what battery cell size Tesla would require, one of the sources said.
While Panasonic is currently Tesla's exclusive battery cell supplier, Tesla Chief Executive Mr Elon Musk said in November the US company would manufacture all its battery modules and packs at the Shanghai factory and planned to diversify its sources.
Mr Musk said in a tweet in November that "Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner.”
Tesla broke ground on the USD 2 billion so-called Gigafactory, its first in China, earlier this month and plans to begin making Model 3 electric vehicles (EV) there by the end of the year.
Mr Musk has said the factory will produce "more affordable" vehicles for the Chinese auto market, the world's biggest, where the firm is facing mounting competition and risks from US-China trade tensions.
Source : Reuters