Tesla will use China’s CATL equipment to open a US battery plant

Apparently, Tesla Inc. will expand battery production in Nevada, opening a small facility using idle equipment from China’s CATL

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Tesla Inc. will expand its battery manufacturing capabilities in Nevada by inaugurating an advanced facility using surplus equipment from Contemporary Amperex Technology Co. Ltd. (CATL) of China, according to informed sources.

The company intends to acquire specialized machinery from CATL and locate the facility in the Sparks area, according to the sources, who spoke on condition of anonymity. Tesla will assume full ownership and financial responsibility for this project, with CATL personnel providing initial assistance with equipment setup before the transfer of full operational control to Tesla.

This strategic expansion will focus on manufacturing cells for Tesla’s high-capacity Megapack products, signaling a significant initiative to secure the supply chain for lithium-iron-phosphate cells domestically in the United States. This effort is seen by industry insiders as a cost-effective way for Tesla to expand its manufacturing capabilities.

This development is particularly noteworthy in light of increasing regulatory scrutiny from U.S. lawmakers and the Biden administration regarding technology exchanges with China, especially in critical sectors such as battery manufacturing. Tesla’s approach, given CATL’s limited involvement, is expected to effectively address potential criticism of American companies’ reliance on Chinese collaborations.

So far, neither Tesla nor CATL have had any official comment on these developments.

In addition, Tesla has announced plans to double production capacity at its existing battery manufacturing facility in Lathrop, California this year. These ambitious expansions underscore CEO Elon Musk’s recent comments that Tesla’s energy storage division is expected to grow rapidly, potentially outpacing its electric vehicle production. At the heart of these growth projections is the Megapack, which is designed primarily for utility-scale applications.

Source: BNN Bloomberg

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