Tesla secures long-term battery materials deal with China’s Huayou, CNGR: report

Recent reports have emerged suggesting that Tesla has signed long-term battery materials supply deals with Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co. The companies will reportedly provide Tesla with ternary precursor products until the middle of the decade. 

The reports come amidst the efforts of veteran automakers like Ford and General Motors to acquire as much battery materials as possible. GM, for one, unveiled deals to purchase materials ranging from lithium to cathode materials last week. Ford, on the other hand, announced a list of suppliers for raw materials such as Argentinean lithium and Indonesian nickel. 

As noted in a Bloomberg report, separate stock-exchange statements from Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co. revealed the battery materials suppliers’ deal with Tesla. The arrangements are for ternary precursor materials or chemical cocktails that are crucial for storing energy in lithium-ion batteries. 

The publication noted that Huayou Cobalt will be supplying Tesla with battery materials from July 1, 2022 until the end of 2025. CNGR will be supplying Tesla between 2023 and 2025. The Tesla effect seems to have positively affected the two battery materials suppliers, as Huayou Cobalt and CNGR shares jumped over 9% each Monday morning. 

Credit: Tesla

Interestingly enough, both Huayou and CNGR were listed by Tesla as part of its direct suppliers in its 2021 Impact Report. CNGR has also stated that it has been supplying Tesla from 2020 until this year. 

With the shift of the automotive industry to electric vehicles, a strong battery materials supply chain is crucial. Tesla has been working on its battery strategy for a very long time, as evidenced by the company’s foresight when it decided to build Gigafactory Nevada with Pansonic even before its first mass-market car, the Model 3, was unveiled. Today, Tesla has inked deals with numerous battery suppliers and battery materials companies, all while pursuing its own battery production efforts. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

The post Tesla secures long-term battery materials deal with China’s Huayou, CNGR: report appeared first on TESLARATI.

Source: TESLARATI

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