*To Remind,
Not long after, reports emerged in November that Elon Musk had met with CATL chairman Zeng Yuqun, presumed at the time to be part of the goal to localise parts for the Model 3 being produced at Tesla’s Shanghai Gigafactory 3 ( localisation of parts is a major goal for Tesla in China in order to bring manufacturing costs down ).
Battery deals
In order to supply its vehicles with enough batteries for this massive increase in production, Tesla has also been in talks with China’s domestic battery company CATL.
Reports say that a preliminary agreement on the battery supply for the Shanghai factory has already been reached, with further discussions underway for a potential global battery supply agreement.
*According to Bloomberg, Musk met for 40 minutes in late August with CATL chairman Zeng Yuqun and it is thought that a final agreement could be reached by mid-2020.
If that were to happen, the long established relationship between the Tesla and Panasonic which has been handling Tesla’s car battery supply chain may face major changes.
A global deal with CATL would become the second such agreement for Tesla after Panasonic, and would diversify risks associated with meeting battery demand which could slow production.
Using locally made batteries would, however, mitigate certain risks such as trade tariffs and import costs, and allow the EV maker to reduce the average selling price (ASP) of its China-made vehicles.
It would also go a long way to ensuring the EV maker’s continued growth.
*So the $64,000 Question imo, was it just a coincidence that Musk ( Tesla ) met with the "Big Cheese" at CAT in August 2019, then just a few months later We / AVZ announced the Deal with Yibin / CAT ?
*Now we have confirmation that, as Qball said,
"This deal is indeed all about CATL".
*Maybe Not so much about Tesla, but No Doubt we will here a lot more about that sooner or later, as
Then,
In February, The Driven reported that development of a cobalt-free battery by Tesla and CATL was on the cards, according to another report first made by Reuters.
Electric car maker Tesla Inc plans to introduce a new low-cost, long-life battery in its Model 3 sedan in China later this year or early next that it expects will bring the cost of electric vehicles in line with gasoline models.
For months, Tesla Chief Executive Elon Musk has been teasing investors, and rivals, with promises to reveal significant advances in battery technology during a “Battery Day” in late May.
The sources said CATL also plans to supply Tesla in China next year with an improved long-life nickel-manganese-cobalt (NMC) battery whose cathode is 50% nickel and only 20% cobalt.
“We’ve got to really make sure we get a very steep ramp in battery production and continue to improve the cost per kilowatt-hour of the batteries — this is very fundamental and extremely difficult,” Musk told investors in January.
# “We’ve got to scale battery production to crazy levels that people cannot even fathom today.” !!!
As,
CATL plans to better serve European market with Germany plant
China's largest power battery maker CATL is ready to make deeper inroads into the European market with its Erfurt, Germany, plant.
The plant will produce both battery cells and modules for the region's partners.
CATL has partnered with BMW, Daimler, Volvo and Volkswagen to offer batteries for their electric vehicles.
The Chinese battery maker is also in advanced talks with Porsche and will supply battery cells for Bosch's 48-volt battery system.
The plant, which is now under construction, will enable it to collaborate closely with more European partners and respond more quickly to customer needs to help car manufacturers accelerate the roll-out of electric vehicles, said the battery maker headquartered in Ningde, Fujian province.
"Europe is a key market for CATL, and many of our partners are based in Europe," said Matthias Zentgraf, president of CATL's European operations, during the ongoing Frankfurt motor show.
"Our new manufacturing plant in Erfurt, Germany, will allow us to combine Germany's industrial tradition and CATL's tradition of innovative battery technology in a strategically central location," he added.
Why would Tesla get CATL involved?
CATL and Tesla have worked together, but that was likely only on the LFP batteries for the entry-level Model 3. We have the impression the article mixed the two technologies here once again.
Another indication that this is the case is that it informs the new batteries "will rely on innovations such as low-cobalt and cobalt-free battery chemistries."
LFP is naturally free of cobalt.
NMC cells – the ones supposed to be the "million-mile" batteries – use that metal.
Perhaps Tesla's agreement with CATL includes having it produce both the LFP batteries and "million-mile" NMC cells for the Chinese market.
CATL has a vital role for Tesla in China.
Its LFP batteries are cheaper and safer due to its chemistry.
When Tesla finally decides to have its Battery Day – either online or in any place – it will probably also mention the CATL LFP batteries.
https://insideevs.com/news/423575/reuters-teslas-million-mile-battery-clarified/
About CATL
Contemporary Amperex Technology Co., Limited (CATL) is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales in battery systems for new energy vehicles and energy storage systems.
In 2019, the company's EV battery sales volume reached 40.25 GWh worldwide, and making it the world leader in annual EV battery consumption volume according to SNE Research.
Headquartered in Ningde, China, CATL has more than 26,000 employees around the world as of 2019 and subsidiaries in Beijing, Liyang (Jiangsu Province), Xining (Qinghai Province) and Yibin
The annual output at the Ningde plant in Fujian province, where the company’s headquarters are located, will be increased by 16 gigawatt hours, the battery manufacturer said.
Capacity in a factory in Jiangsu will increase by 24 gigawatt hours.
And in Sichuan, a new plant with a capacity of 12 gigawatt-hours will open.
New equipment at these facilities will be launched in two to three years.
* Perfect Timing, Just as AVZ / Manono is ramping up production also
CATL is currently building its first overseas factory in Germany.
Mass production at the facility with a capacity of 14 gigawatt hours will begin in 2022.
* Again, just as AVZ / Manono and the EV Lithium Revolution 2.0 is taking Off imo
Food for thought
"CAT Food"
With a MASSIVE amount of it at Manono
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