Quantcast
Connect with us

Tesla in talks with China’s Lishen over Shanghai battery contract – sources

Published

on

Tesla Inc (TSLA.O) has signed a preliminary agreement with China’s Tianjin Lishen to supply batteries for its new Shanghai car factory, as it aims to cut its reliance on Japan’s Panasonic (6752.T), two sources with direct knowledge of the matter said.

The companies had yet to reach a decision on how large an order the U.S. electric car company would place, and Lishen was still working out what battery cell size Tesla would require, one of the sources said.

While Panasonic is currently Tesla’s exclusive battery cell supplier, Tesla Chief Executive Elon Musk said in November the U.S. company would manufacture all its battery modules and packs at the Shanghai factory and planned to diversify its sources.

“Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner,” Musk said in a tweet in November.

Other battery makers in the running for contracts could include Contemporary Amperex Technology Co Ltd (300750.SZ) and LG Chem Ltd (051910.KS).

ADVERTISEMENT

Tesla broke ground on the $2 billion so-called Gigafactory, its first in China, earlier this month and plans to begin making Model 3 electric vehicles (EV) there by the end of the year.

Musk has said the factory will produce “more affordable” vehicles for the Chinese auto market, the world’s biggest, where the firm is facing mounting competition and risks from U.S.-China trade tensions.

Tesla declined to comment, while Lishen did not immediately respond to a request for comment.

ADVERTISEMENT

Panasonic said in a statement it was studying various possibilities with regards to Tesla’s Shanghai plant, but nothing had been decided. It declined to comment on the possibility of losing exclusive-supplier status with Tesla.

The sources declined to be identified because the discussions are private.

APPLE SUPPLIER
Lishen, which says its clients range from Apple (AAPL.O) and Samsung Electronics (005930.KS) to Geely (0175.HK) and Hyundai Motor (005380.KS), has joined other battery makers in aggressively pursuing contracts with the rapidly growing EV industry.

ADVERTISEMENT

The Chinese company started mass production of the same type of cylindrical battery made by Panasonic for Tesla’s Model 3 in 2017, in the city of Suzhou about 100 kms (60 miles) away from Shanghai.

Reuters reported on Monday that Panasonic and Toyota Motor Corp (7203.T) were set to launch a joint venture next year to produce EV batteries in an effort to compete with Chinese rivals.

A joint venture would build on the agreement that the pair announced in late 2017 on joint development of batteries with higher energy density in a prismatic cell arrangement.

ADVERTISEMENT

It would also help Panasonic cut its heavy reliance on Tesla, whose production delays have weighed on the Japanese company’s earnings.

Panasonic planned to shift most of its prismatic battery-related equipment and facilities in Japan and China to the joint venture, while those producing batteries for Tesla would remain under the company, a source said.

Reporting by Yilei Sun and Tom Daly in BEIJING; additional reporting by Makiko Yamazaki in TOKYO; Editing by Brenda Goh and Stephen Coates


Report typos and corrections to [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Facebook

Republican analyst says Trump is ‘threatened by’ being challenged by women: ‘It hurts his ego’

Published

on

According to one Republican commentator, President Donald Trump's decision to lash out at four Congresswomen of color stems from his inability to handle being challenged by women.

In a segment with MSNBC host Ali Velshi, Rina Shah, who runs Republican Women for Progress, said that she's been the target of racist attacks from Trump supporters ever since she announced she wouldn't support him.

"I believe that what this president is doing is fanning the flames," she said. "He cannot denounce white supremacy, white nationalism. This is a moment in which he could have kept his mouth shut. You know, this tit-for-tat with [Speaker Nancy] Pelosi (D-CA) and 'The Squad,' he didn’t need to engage in it. If I was advising the president, if I were one of his advisers, I would have said stay out of it. But he doesn't listen to anyone around him."

Continue Reading

Facebook

Mitt Romney blames democratic women for Trump’s racism: Their views ‘are not consistent with my experience’

Published

on

Little more than six months ago Senator-elect Mitt Romney (R-UT) promised voters he would "speak out" against President Donald Trump's racism. On Monday, Senator Mitt Romney blamed the targets of President Donald Trump's two-day racism fest for the President's own racism.

"I will speak out against significant statements or actions," by President Trump, "that are divisive, racist, sexist, anti-immigrant, dishonest or destructive to democratic institutions," Romney said in a New Year's Day 2019 Washington Post op-ed.

Continue Reading
 

Facebook

Facebook needs ‘very high standard’ for Libra coin: Mnuchin

Published

on

Facebook will need to meet "a very high standard" before it moves ahead with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday.

Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities.

"Whether they're banks or non-banks, they're under the same regulatory environment," Mnuchin told reporters at the White House, adding that Facebook "will have to have a very high standard before they have access to the financial system."

Continue Reading
 
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

close-image