CATL has signed a new supply contract for battery cells with Tesla. The existing contract for supply between July 2020 and June 2022 will be replaced by a new contract from January 2022, which will run until December 2025.
This is according to an official statement by CATL quoted by several media. According to the statement, the Chinese battery manufacturer and Tesla entered into a Production Pricing Agreement on Friday, which CATL quotes as saying: “The signing of the agreement represents Tesla’s further recognition of the product quality and production capacity of the company’s batteries, which is conducive to strengthening the long-term and stable cooperative relationship between the company and Tesla, and in line with the interests of the company and its shareholders.” The final purchase volume for battery cells will be determined based on actual orders at a later date.
CATL is also not giving any details on the chemistry of the cells. The new deal is interesting, however, against the background of the rumour that CATL could be planning a large new factory with an annual capacity of 80 GWh in the immediate vicinity of the Tesla plant in Shanghai.
For a long time, as is well known, Tesla relied only on Panasonic as a cell supplier. Only with the start of production at the Gigafactory Shanghai did the Californian electric carmaker begin to admit other suppliers, namely LG Energy Solution and CATL. The latter manufacturer supplies the production facility in Shanghai with lithium iron phosphate (LFP) battery cells.
On the stock market, the news of the follow-up contract between CATL and Tesla caused a new annual high in the share performance of the Chinese group. CATL shares had already risen by a good 70 per cent since March – far above the average increase in value on the stock market, which was 13 per cent in the same period.
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