FinDreams Battery, a wholly-owned subsidiary of Chinese automaker BYD, has won a contract to supply affordable lithium iron phosphate (LFP) battery cells to Tesla for the Elon Musk-led auto firm to make its Megapack energy-storage batteries, Chinese media outlet LatePost reported on Wednesday, citing sources familiar with the matter. BYD is set to supply as much as eight gigawatt hours (GWh) of battery cells annually from early 2025, if Tesla’s new Shanghai plant reaches full capacity, which could bring the Chinese manufacturer revenue of RMB 3.5 billion ($483 million) based on average industry prices. The move could give Tesla more bargaining power and avoid its reliance on CATL, which is currently the exclusive supplier of storage batteries for the US automaker in China, sources said. Last month, Tesla began construction of its first overseas Megafactory facility, scheduled for operation in Shanghai in the first quarter of 2025. It plans to initially make 10,000 Megapack units a year, equal to around 40 gigawatt hours of energy storage, Chinese state media outlet Xinhua first reported on April 9, 2023. [LatePost, in Chinese]
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