Sourcing Diversification

Tesla plans to construct a lithium battery plant Gigafactory in India.
Tesla plans to construct a lithium battery plant Gigafactory in India.

 

Tesla CEO Elon Musk said on his Twitter that his company would use batteries supplied from Samsung SDI and LG Chem. Specifically, he mentioned in response to a question from a Bloomberg reporter that the Model 3, the Tesla Roadster and its Tesla Energy Storage System would adopt Panasonic, LG Chem and Samsung SDI batteries, respectively.

He clarified that Panasonic is the sole supplier when it comes to batteries for use in the Model 3, Model S and Model X and media reports that Tesla would use non-Panasonic batteries for these models are wrong.

Bloomberg reported by quoting the remarks of the Tesla CEO that Samsung SDI would supply batteries to Tesla Energy. Tesla Energy is an arm of the company in the renewable energy sector that produces energy storage systems for household and industrial applications.

LG Chem, in the meantime, has signed no contract with Tesla with regard to batteries for new vehicles. At present, cooperation between LG Chem and Tesla are limited to the supply of some replacement batteries. Samsung and LG Group subsidiaries are supplying display parts and electrical components for Tesla vehicles. 

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