Tesla and BYD are two of the undisputed leaders when it comes to the proliferation of electric vehicles (EVs).
US and Chinese companies create much of their own technology in-house, and have ramped up production more than any of the older players so far.
While they are the main contenders in the mainstream EV battleground, especially as Warren Buffett-backed BYD pushes hard beyond China, they also have a symbiotic relationship.
BYD has been preparing to supply Tesla with low-cost internal Blade batteries using lithium iron phosphate (LFP) chemistry – a more stable and cheaper type of pack.
Most Tesla Model 3 and Y vehicles in Australia are already sold with LFP batteries, made by rival BYD CATL.
According to This Reuters report from June 2022, BYD’s executive vice president and former head of engineering told China’s state-run TV network CGTN that “we are now good friends with Elon Musk as we are preparing to supply batteries to Tesla soon”.
However, the latest reports from Korea Hankyung claims that this deal is on the fritz, with Tesla looking to LG Energy Solutions (Korea) and CATL (China) to fill its LFP battery needs.
These reports have been dismissed by those closest to a clear agreement.
“The media reports are false. The relationship between Tesla and BYD is positive,” Elon Musk said in a tweet on Tuesday.
Meanwhile, BYD said that the report was “not in line with the actual situation.”
Therefore, the possibility of a cheap Tesla variant powered by the BYD LFP battery still seems short.
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