Rumors surrounding Tesla and its alleged battery supply deal with Chinese company BYD have been revived recently. Following a statement from a BYD executive vice president who mentioned that the company would soon be supplying batteries to Tesla, reports have now emerged suggesting BYD’s batteries will be used in the Model Y crossover.
Tesla China is ramping up rapidly and plans are underway to further expand the company’s vehicle production. To do this, Tesla would seek to build a new factory near Gigafactory Shanghai. With this factory in place, Tesla China’s production could be doubled to around 1 million cars per year.
Such production means that Tesla China would need to secure the batteries for the vehicles it would produce. Today, Gigafactory Shanghai mainly relies on battery cells from CATL and LG Energy Solution. However, once the company’s new electric car factory comes online, Tesla would need a lot more batteries for its vehicles.
Quoting a source familiar with FinDreams Battery, the battery manufacturing arm of BYD, a local automotive newspaper Automatic time noted that Tesla would initially use BYD’s battery cells in the Model Y as early as next year. The publication’s source also noted that both companies are moving cautiously at this time.
Rumors that Tesla uses BYD batteries for its vehicles have been around since last year, but none of the rumors have been confirmed. That is, at least, until recently when BYD Executive Vice President Lian Yubo mentioned a battery deal with Tesla during an interview with a state-run news agency. CGTN. “Tesla is a very successful company no matter what. BYD respects Tesla and we admire Tesla. We are good friends with Elon Musk, and we will be supplying him with batteries soon. We are friends,” Yubo said.
BYD is a good choice for Tesla as the next battery supplier. While BYD is best known for its cars, the company has risen through the ranks to become one of the world’s most formidable battery manufacturers. With that in mind, a battery supply deal with Tesla could be beneficial for BYD, as it would go a long way to legitimizing the company’s growing battery cell business even further.
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Post expires at 2:24pm on Sunday June 26th, 2022