Report: Tesla will no longer use Panasonic batteries for its production in China

28 July 2020, 07:33:33

Report: Tesla will no longer use Panasonic batteries for its production in ChinaAccording to South Korean news outlet The Guru, Tesla will no longer use Panasonic batteries for its production in China. LG Chem and CATL will be the main suppliers for cylindrical cells for China-made Tesla models. In particular, as the deal with LG Chem expands, LG Chem is expected to emerge as the main supplier to take charge of battery volume for Tesla's Chinese electric vehicle models. This information comes based on "industry sources", according to which Tesla has ended its contract with Panasonic for the Chinese production. For comparison, in January, Tesla received more batteries from Panasonic (83.32 MWh) than LG Chem (54.39 MWh) and installed it on Model 3 made in China. However, in February, the entire amount was supplied by LG Chem (200 MWh). For the first half of the year, LG Chem delivered 10 times more batteries than Panasonic. In order to meet Tesla's demand, LG Chem is looking for ways to convert the cylindrical battery production line at the Ochang plant in Chungbuk for Tesla batteries.

The report continues saying that Tesla is also about to launch a vehicle with CATL batteries. Both companies entered a two-year supply contract in February. Another source that indirectly proves that Panasonic is excluded from Chinese-made Teslas is that five Tesla models were included in the 6~8th green car recommendation list announced by the Ministry of Commerce, Industry and Energy in 2020. Only LG Chem and CATL are on the list of suppliers.Source

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