According to an Electrek story, Tesla Inc (NASDAQ: TSLA) has struck a new long-term battery cell arrangement with China’s Contemporary Amperex Technology Co to ensure supplies from January 2022 to December 2025.
What happened was this: According to the article, the previous deal between Tesla and CATL ran from February 2020 to June 2022.
After years of relying on Panasonic Corp (OTC: PCRFY) as its primary battery source, Tesla has switched to a multi-supplier strategy in recent years, owing to increased competition and a scramble to obtain massive quantities of batteries as it prepares to put more of its gigafactories into production.
Also see: CATL, a Tesla and Nio supplier, is rumored to be planning a new electric vehicle battery plant in Shanghai.
Why Does It Matter? Panasonic just announced the sale of its entire Tesla stock to fund new strategic initiatives, while maintaining a “business partner” connection with Tesla.
Last year, Panasonic and Tesla agreed to a three-year price agreement to produce and deliver lithium-ion battery cells in Tesla’s Gigafactory in Nevada.
CATL also supplies Nio Inc, a Tesla competitor, with batteries (NYSE: NIO).
Tesla shares closed 2.51% higher at $688.72 on Monday.
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