Eve Energy's Malaysian factory is expected to start supplying energy storage batteries to Tesla US in 2026, according to a local report.
Eve Energy (SHE: 300014) has reached a supply agreement with Tesla (NASDAQ: TSLA) for energy storage batteries, and its Malaysian factory is expected to start supplying energy storage batteries to Tesla US in 2026, according to a report in Chinese media outlet LatePost today.
Asked for confirmation, the Chinese lithium battery maker did not deny it, saying only that information about its business should be subject to announcements, according to the report.
Shenzhen-listed Eve Energy said in a stock exchange announcement yesterday that it and its Malaysian subsidiary, Eve Energy Malaysia, had signed a deal with a customer in the Americas to supply battery cells to that customer.
The announcement did not name the customer, with whom Eve Energy said it had a long-term supply relationship for the supply of batteries.
Eve Energy is Tesla's sixth battery supplier, after the US electric vehicle (EV) maker has struck supply deals with Panasonic, LG Energy Solution, CATL, BYD (HKG: 1211, OTCMKTS: BYDDY) and Sunwoda, according to LatePost.
The company is also the third to supply energy storage batteries to Tesla US. The other two are CATL and BYD, the report noted.
Prior to this year, CATL was the sole battery supplier to Tesla's US energy storage plant. But the US company has been increasing its battery supplier options to gain pricing power over batteries, the report said.
After Tesla's supplier expansion, CATL remains the largest supplier to its energy storage business, LatePost said, citing a person familiar with the matter.
In its energy storage business, Tesla buys battery cells from suppliers and assembles them into complete energy storage systems, including the Megapack, a large-scale energy storage system for office buildings and factories, and the Powerwall for homes, with the Megapack contributing about 80 percent of revenue to the business, the report noted.
Tesla's US energy storage factory's battery demand is at about 40 GWh per year and still growing, according to LatePost. An industry chain source said LG Energy Solution is also trying to supply storage batteries to Tesla, the report said.
Tesla purchased a lithium iron phosphate (LFP) battery production line from CATL earlier this year and built an LFP energy storage battery factory in Nevada to begin in-house production of batteries for energy storage, the report noted.
In addition to the Nevada plant, Tesla began construction of the Shanghai Megafactory on May 23, its first energy storage project outside the US.
On December 24, another local media outlet, Shanghai Observer, reported that the Shanghai Megafactory was expected to be completed by the end of this year.
The Shanghai Megafactory will mainly produce Megapack for the global market. The factory was expected to go into production in the first quarter of 2025, with annual Megapack production of up to 10,000 units and energy storage of nearly 40 GWh, Tesla previously said.
In a previous report on June 5, LatePost said BYD's battery manufacturing unit FinDreams struck a deal with Tesla in March to supply the Shanghai Megafactory.
FinDreams will begin supplying Tesla with battery cells for energy storage in the first quarter of 2025, the June report said.
The primary supplier of the battery cells used in Tesla's Shanghai Megafactory has been identified as CATL, with FinDreams as an alternative supplier, according to the LatePost report in June.
FinDreams' share of supply should be more than 20 percent, that previous report said, citing a person familiar with the matter.
BYD's FinDreams unit to supply battery cells to Tesla's Shanghai Megafactory
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