Chinese Batteries for the Next Tesla Cars?

Tesla wants to start production of Model 3 in Gigafactory 2 by the end of the year. To achieve this goal, the US manufacturer would seek new battery suppliers.

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With a second Gigafactory under construction in the Shanghai area, Tesla’s teams are working hard to find battery suppliers who are able to track the factory’s planned output. One of these suppliers – according to a report released by Bloomberg, could be “Contemporary Amperex Technology Co.” It will quickly become the largest manufacturer of lithium-ion cells in China and around the world.

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Tesla’s primary partner in the US is Panasonic, but it is unlikely that the Japanese could support the production of another Gigafactory, mainly because it would mean the opening of another production line for the Model 3.

Tesla hopes to start production of Model 3 in Gigafactory 2 by the end of the year. Tesla’s latest annual report mentioned that it had already hired a “qualified supplier” for Gigafactory 2’s battery cells, but did not specify which one. The company also made it clear that it was looking for other suppliers to help it fulfill its orders.

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