CATL Extends Battery Supply Deal with Tesla

China's Contemporary Amperex Technology Co. said Monday it has extended a deal with Tesla Inc. to supply electric vehicle battery cells to 2025.

In a filing to the stock exchange, the Chinese battery maker said it would continue to supply lithium-ion batteries to the Palo Alto, Calif., EV maker until December 2025.

CATL has been supplying lithium batteries to Tesla since mid-last year, under the agreement signed February 2020.

Sourcing locally has helped Tesla cut the prices of its Shanghai-made Model 3 sedans, which have been trimmed down by more than 25% since they were first delivered to the public in January 2020. More than 90% of the parts used in Tesla's Shanghai factory are from Chinese suppliers, Tesla China told a local media last month.

Tesla also uses LG Chem batteries in its Shanghai plant, where it also is making Model Y sport-utility vehicles. It isn't clear whether CATL's batteries are used in Model Ys. Tesla didn't immediately respond to a request for comment.

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(END) Dow Jones Newswires

June 28, 2021 12:31 ET (16:31 GMT)

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