Korea Economic Daily reported that Tesla called off its cooperation with BYD on batteries. In response BYD said, “No response yet.”
Tesla used BYD’s 10GWh batteries for its low-cost models in Europe last year. The Korea Economic Daily reported that Tesla and BYD did not ask for further supply of batteries for low-cost models such as the Model 3 standard version after the contract expired earlier this year. There are three possible reasons for the cessation of cooperation.
- BYD blade battery continuous problems.
- Taking into account the U.S. subsidy policy related to electric vehicles.
- BYD in Europe, India, Southeast Asia and other places to manufacture and export ev vehicles and other direct competition with Tesla, which is also the reason for the termination of the contract.
According to the article, LG Energy Solutions is accelerating the development of lithium iron phosphate batteries for electric vehicles at the request of Tesla, which is because Tesla’s upcoming cheaper models will have greater demand for lithium iron phosphate batteries.
Source：IThome
