China’s leading company, CATL (Contemporary Amperex Technology Ltd), known for its automotive lithium-ion battery manufacturing, signed a four year deal with Tesla to supply the batteries. It came after the signature on a contract of two years in the year 2020.
The agreement would come into effect from January 2022 as per the deal disclosed by CATL in its stock filing. However, it will continue until December 2025. However, the company is unsure about its framework impact on the performance as it would be decided when Tesla ask for supplies. Thus, the amount of volumes is still undecided.
In a statement, CATL said that the agreement by Tesla signified the quality of the product, the capability of production and acknowledgement of manufacturing. The company believes that it would strengthen its relationship and cooperation with Tesla.
Notably, the companies inked a non-binding deal for supply in February 2020. It was effective from July 2020 to June 2022.
Interestingly, in 2020, CATL drew revenue of 50.32 billion yuan. It was a surge of 9.9 per cent on a year-on-year basis (USD 7.8 billion approximately). Likewise, its lithium-ion battery sales moved up by 14.36 per cent a year-on-year. Now, the total capacity stands at 46.84GWh. The annual report filed by it with Shenzhen Stock Exchange revealed it.
The electric car manufacturer Tesla built its first overseas plant in Shanghai at the onset of 2020.
As per China’s market regulator, it is noticeable that Tesla is slated to recall China imported or made Model Y and Model 3 automobiles starting Saturday. This is because there’s some problem with their cruise control systems.