In order to increase the purchase of low-cost batteries, Tesla Inc. is working with the Chinese battery manufacturer EVE Energy Co. to discuss Negotiations for its inclusion in the supply chain of its Shanghai factory.
Two people familiar with the matter said that the negotiations have entered an in-depth stage, and the two companies are seeking to finalize a partnership in the third quarter.
One of the people familiar with the matter said that Yiwei Lithium Energy, which is listed in Shenzhen, is currently conducting some final stages of testing for Tesla’s products. At present, Tesla and Yiwei Lithium have not responded to media requests for comment.
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Yiwei Lithium Energy mainly produces lithium iron phosphate (LFP) batteries, which are cheaper to produce because they use iron instead of the more expensive nickel and cobalt. However, LFP batteries generally provide a shorter charging time than the more popular nickel-cobalt batteries.
If the negotiation is successful, Yiwei Lithium Energy will become Tesla’s second LFP battery supplier after Contemporary Amperex Technology Co.
