Eve Energy, a Chinese lithium battery maker, has reportedly secured a supply agreement with Tesla for energy storage batteries. According to a recent report from Chinese media outlet LatePost, Eve Energy’s Malaysian factory is anticipated to begin supplying energy storage batteries to Tesla US by 2026.
Although Eve Energy did not confirm the specifics of the agreement, the company did mention that any information regarding its business operations should be officially announced. The agreement was made between Eve Energy and its Malaysian subsidiary, Eve Energy Malaysia, and a customer in the Americas for the supply of battery cells.
This deal positions Eve Energy as Tesla’s sixth battery supplier, alongside industry giants like Panasonic, LG Energy Solution, CATL, BYD, and Sunwoda. The Chinese company is also set to become the third supplier of energy storage batteries to Tesla US, following CATL and BYD.
Tesla’s decision to diversify its battery suppliers stems from a strategy to enhance pricing leverage over batteries. The company’s US energy storage factory currently boasts a battery demand of approximately 40 GWh per year, which is expected to continue growing. LG Energy Solution is also reportedly vying to supply storage batteries to Tesla, indicating a competitive market.
In a bid to bolster its energy storage business, Tesla acquired a lithium iron phosphate (LFP) battery production line from CATL earlier this year. The company has also initiated the construction of the Shanghai Megafactory, its first energy storage project outside the US. The Shanghai Megafactory is projected to commence production in the first quarter of 2025, with an annual production capacity of up to 10,000 Megapack units and energy storage of nearly 40 GWh.
Furthermore, BYD’s battery manufacturing unit, FinDreams, struck a deal with Tesla to supply the Shanghai Megafactory with battery cells. This collaboration positions FinDreams as an alternative supplier to CATL for the Shanghai Megafactory, with a supply share exceeding 20 percent.
Tesla’s efforts to expand its network of battery suppliers reflect the company’s commitment to innovation and sustainable energy solutions. The partnership with Eve Energy underscores the growing demand for energy storage solutions in the global market, with Tesla at the forefront of driving innovation in the electric vehicle and energy storage industries.
