Tesla

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CATL

The Tesla–CATL partnership began in February 2020 when CATL signed a battery supply agreement with Tesla to provide lithium-ion battery cells for Tesla vehicles produced in China. The agreement started deliveries in July 2020 and was later extended through December 2025, reflecting Tesla's growing reliance on CATL as a strategic battery supplier.

At its core, the partnership focuses on battery supply and manufacturing scale. CATL provides lithium iron phosphate (LFP) battery cells that Tesla uses in many standard-range vehicles. These batteries offer lower cost, long service life, and improved safety characteristics, helping Tesla reduce vehicle costs while supporting large-scale production.

The relationship became particularly important for Tesla's Gigafactory Shanghai, which rapidly expanded into one of Tesla's largest production facilities. CATL's ability to manufacture batteries at enormous scale allowed Tesla to increase production of the Model 3 and Model Y while maintaining a stable battery supply chain during a period of strong global EV demand.

In 2021, the companies signed a new long-term production pricing agreement to deepen the partnership. CATL stated that the extension reflected Tesla's recognition of CATL's battery quality and production capabilities and would strengthen a long-term cooperative relationship between the two firms.

Today, the Tesla–CATL partnership is widely regarded as one of the most significant industrial collaborations in the electric vehicle sector. By combining Tesla's vehicle and energy-storage platforms with CATL's battery technology and manufacturing capacity, the partnership has helped accelerate EV adoption worldwide and supports an estimated $10–20 billion of economic activity annually.