On Monday, China’s top electric vehicle battery maker “CATL” announced that it has signed a battery supply agreement with electric car marker Tesla.
Tesla had most recently said that it would diversify the supply of batteries to its $2 billion Shanghai plant, where Model 3 cars were being produced, which it started delivering in December last year.
Last week during Tesla fourth quarter earning call, Tesla said its pact with LG and CATL was a smaller scale, and it will compensate its long-standing batter supply agreement with Japan’s Panasonic Corporation with it.
Tesla will assess the amount of battery sales between July 2020 and June 2022, according to its own needs, CATL said in the stock exchange filing, adding that the arrangement does not place any limits on Tesla’s purchasing volume.
