Tesla is reportedly in talks with CATL, China’s number one battery cell manufacturers for electric vehicles, in order to supply batteries for Model 3 vehicles produced at Gigafactory 3 in Shanghai.

Bloomberg reported on the discussions earlier today:

“CATL has been discussing the required specifications for the batteries with Tesla officials, the people said, asking not to be named because the talks are private. Still, there’s no guarantee that an agreement will be reached, according to the people.”

Electrek’s Take

I’m sure Tesla is talking with several battery cell suppliers in China right now, including CATL.

Originally, Tesla was planning to produce both cells and full vehicles at Gigafactory 3, but they had to accelerate their plans due to the trade war and decided to focus on the vehicles.

Sourcing the cells entirely from a third-party is indeed likely going to save them time, but it’s still going to be extremely difficult to find a supplier able to deliver cells to the Model 3’s specification in time for a start of production later this year.

Honestly, I’d be surprised if they can do it in any significant volume.

What do you think? Let us know in the comment section below.

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