“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,” Tesla said in an official statement.
Tesla procured a deal with CATL mostly for scaling production of the Model 3 and Model Y.
This is in addition to Panasonic, Tesla’s longest-standing partner, which has a presence at the Nevada Gigafactory. Panasonic made a lot of money from Tesla as well, having invested in it and recently selling off its gains. Its new CEO has also stated that it is willing to invest in the new 4680 table cells that Tesla has been touting recently. Panasonic is assisting in the development of the new technology.
Tesla has even worked with LG Energy Solutions. However, the agreement with CATL is significant because it now has a supply beyond 2022, whereas its previous agreement will last only until next year. There is no information on what type of batteries these are.
News source- Economic Times