Tesla-CATL partnership strengthens as new facility sends cells to Giga Shanghai


Battery supplier Tesla Contemporary Amperex Technology (CATL) ‘s new facility near Gigafactory Shanghai is already sending cells to the electric carmaker, bolstering the already strong partnership between the two companies, new reports suggest.

In June 2021, CATL announced plans to build a new electric vehicle battery production plant to be located near Giga Shanghai, Tesla’s electric vehicle manufacturing plant in China. The June report said the site could include a center for research, global sales and operations. The new facility was further help for CATL, as it said it was struggling to hire and retain staff in Ningde, where the battery manufacturer’s headquarters are located. Shanghai offered more diversity in terms of recruiting talent, which was attractive to the cell maker. CATL planned to hire at least 5,000 workers at the site.

Tesla’s China battery supplier CATL plans new facility near Giga Shanghai

Sources familiar with the matter said the new site would build enough battery cells to power 800,000 electric vehicles each year. This indicated a potential capacity of 80 gigawatt hours per year. The planned installation of 80 GWh would supplement the 69.1 GWh already produced and would be added to the additional 77.5 GWh under construction.

The supply chain may already be alive and active, according to a new report from the Shanghai Observer, who indicated that the new CATL facility is already supplying battery cells to Gigafactory Shanghai since November. The source said the ramp-up phase is well advanced and CATL has already completed 60% of the site’s design capacity. CATL has not confirmed the reports.

Tesla is working on expanding production lines and capacity at Gigafactory Shanghai. In November, the company carried out a routine environmental impact assessment (EIA) and said it planned to increase the production capacity of a “new model line” by at least 50%. This can be thought of as the Model Y line, which already has 6,000 active employees. Tesla wants to increase the manufacturing capacity of the plant and bring an additional 3,000 workers to the Model Y line, bringing the total to 9,000 workers for the all-electric crossover production processes.

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Tesla-CATL partnership strengthens as new facility sends cells to Giga Shanghai

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