Tesla is negotiating a battery supply contract with China’s Yiwei Lithium Energy. That’s the news from four sources cited by Reuters today, May 14. The news has caused the stock of Yilongwei Lithium Energy to soar more than 10%.
The news said that the company will join the supply chain of Tesla’s factory in Shanghai. Tesla is currently trying to increase the purchase of “low-cost” batteries.
Lithium Wealth produces lithium iron phosphate (LFP) batteries, which are cheaper to produce because they use iron to replace more expensive nickel and cobalt.
But lithium iron phosphate (LFP) batteries can provide a lower range on a single charge than the more common use of nickel-cobalt raw material batteries.
Two sources said negotiations have reached a more advanced stage, and Tesla is looking to finalize the partnership in the third quarter.
Shenzhen-listed EVERLIGHT is currently in some of the final stages of testing its products for Tesla, a person familiar with the matter said.
Immediately after the news was reported exclusively by Reuters, EVERLIGHT spiked more than 10 percent in the stock market.
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