Tesla is rumored to have signed battery cell supply agreement with EVE

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Tesla is rumored to have signed battery cell supply agreement with EVE


Tesla is rumored to have signed a battery cell supply agreement with EVE Energy, a Chinese battery cell manufacturer.

For years, Tesla has been increasing the percentage of its electric vehicles powered by LFP battery cells.

Lithium iron phosphate (LFP) is cheaper than the nickel-rich alternative, but they have lower energy density – resulting in a shorter range.

Over the last few years, LFP energy density has increased enough to make sense in cheaper electric vehicles.

Tesla has been buying LFP battery cells from China’s CATL and BYD.

In 2021, there were rumors that Tesla was in discussions with EVE Energy, another Chinese battery cell manufacturer, to source LFP battery cells.

Now, three years later, it sounds like a deal has been made.

Chinese media are reporting that Eve and Tesla have signed an agreement for Tesla to get cells from a Malaysian factory starting in 2026 (via CNEV Post):

Eve Energy has reached a supply agreement with Tesla for energy storage batteries, and its Malaysian factory is expected to start supplying energy storage batteries to Tesla US in 2026, according to a report in Chinese media outlet LatePost today.

Eve confirmed that it recently signed a deal with “a customer in the Americas” without confirming the customer, but LatePost reached out to them when reporting that Tesla was the customer, and they didn’t confirm nor deny it.

For the longest time, Tesla only had Panasonic as its battery cell supplier. The automaker pioneered using cylindrical li-ion cells in electric vehicles. Prior to Tesla, they were primarily used in personal electronics, like laptops.

At the time, Panasonic was the only cell manufacturer willing to put its cells in Tesla vehicles.

Over the last few years, Tesla has greatly increased its battery cell suppliers, adding contracts with CATL, LG, BYD, Samsung, and now apparently Eve Energy.

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