OTCPK:KATFF - Post by User
Post by
Sogosohubidu201on Aug 23, 2019 12:22pm
120 Views
Post# 30059262
Tesla Agrees to Buy LG Batteries for Vehicles Made in China
Tesla Agrees to Buy LG Batteries for Vehicles Made in Chinahttps://www.bloomberg.com/news/articles/2019-08-23/tesla-said-to-agree-to-buy-batteries-from-lg-for-china-factory
Batteries made by LG Chem will be used initially in Model 3 cars manufactured in the plant near Shanghai, Tesla’s first outside of the U.S, said the people, asking not to be identified discussing a private matter. LG Chem batteries will also be used in Model Ys produced there once the compact crossover car is released, they said. Shares of LG Chem jumped.
The supply agreement isn’t exclusive to LG Chem, the people said, meaning Tesla could procure batteries from other suppliers as the Model 3 maker prepares to start production in China later this year, part of the EV pioneer’s push into what is the world’s biggest market for new-energy vehicles.
Tesla plans to use multiple battery suppliers for its China-made cars, the people said, and has also been
in talks with top Chinese battery producer
Contemporary Amperex Technology Co. Ltd. about a supply deal, Bloomberg reported in March. Tesla has a long-standing relationship with Japan’s Panasonic Corp., which makes batteries with the carmaker in Nevada.
Talks with CATL are continuing, but are taking time as the two sides discuss technical specifications, according to the people. LG Chem was more flexible in meeting Tesla’s technology requirements, one of the people said.