Tesla confirms cooperation with Ningde era for domestic Model 3 will use domestic batteries

Tesla this morning released its 2019 Q4 and full-year results, delivering 367,000 Model cars last year and expecting more than half a million vehicles to be mass-produced this year. Meanwhile, at the earnings conference, Tesla confirmed the news that it had partnered with Ningde, China’s largest power battery supplier.

Tesla confirms cooperation with Ningde era for domestic Model 3 will use domestic batteries

Tesla’s partnership with the Ninder era has been rumoured for a long time, and last year it was reported that Tesla CEO Elon Musk had traveled to Shanghai in late August 2019 for a 40-minute meeting with the top executives of the Ninder era, after which the two companies reached a non-binding agreement. The final battery supply agreement is expected to be signed in mid-2020, and the purchase of batteries from the Ningde era will be used in model 3 models.

But Tesla has previously denied this rumor, late last year the media asked Tesla China-related officials to verify, Tesla head said: “I have not heard of this.” “

Now Tesla has finally admitted, but the two sides have not officially announced the details of the cooperation, but Tesla and the Ninder era of cooperation will obviously start from the domestic Model 3 electric car, the current domestic Model 3 is still using Panasonic and LG power battery, using its latest 21700 battery, it is known to have an energy density of about 300Wh/Kg, than the original Panasonic 18650 battery 205Wh/kg increased by about 20% of the current maximum density of passenger cars.

According to public data, the Ningde era in 2019 to achieve the installed power of 32. GWh, up 37% YoY, supporting domestic car enterprises up to 120, of which more than 1GWh customers reached 9, the market share of 51.76 percent.

The Ningde era first came into contact with the in-car power battery industry, and took over the BMW’s big list. Subsequently, under the effect of star aura, Ningde era and Honda, Hyundai, Toyota, Mercedes-Benz Daimler, Peugeot Citroen, Jaguar Land Rover and other international well-known car companies reached a supply agreement, which also makes the Ningde era in the domestic account for more power battery market share.

As one of the most important costs of electric vehicles, the use of domestic batteries, the domestic Model 3 is expected to continue to reduce prices, Tesla’s Shanghai manufacturing director Song Gang also told the media, “At present, Tesla’s Shanghai plant parts localization rate of about 30%, the plan to july 2020 to 70%-80%.” “It is clear that as the localization rate of the domestic Model 3 parts increases, there will be further room for further exploration of the price.