Tesla will develop new batteries on its own, and it is expected that specific information such as battery composition will be announced at the battery investor meeting in April, Chinese media E-Company quoted unnamed Tesla sources as saying.
Earlier today, Reuters reported that Tesla is in advanced stages of talks to use batteries that contain no cobalt from Contemporary Amperex Technology (CATL), China's largest automotive lithium-ion battery maker, in cars made at its China plant.
An unnamed source from Tesla said that it is true that there is a cooperation agreement with the CATL, and the lithium iron phosphate battery produced by CATL does not contain cobalt itself. However, he did not comment on whether the cooperation would be finally reached.
Adoption of CATL batteries would mark the first time for Tesla to include so-called lithium iron phosphate (LFP) batteries in its lineup.
Tesla has been talking to CATL for more than a year to supply LFP batteries that will be cheaper than its existing batteries by a "double-digit percent," said a person directly involved in the matter.
EV manufacturers usually use nickel-cobalt-aluminum (NCA) or nickel-manganese-cobalt (NMC) batteries on passenger vehicles because of their higher energy density, which is critical in determining how far an EV can drive on single charge.
Tesla shares went down 1 percent in pre-market trading.