When you’re producing hundreds of thousands of electric vehicles every year, as Tesla does, the relationship with your battery suppliers is absolutely critical.
For that reason, Tesla has chosen its battery suppliers carefully and has invested in large-scale and long-term partnerships with two of the world’s leading EV battery manufacturers.
But who are Tesla’s key battery suppliers? Which batteries do they manufacture? And where do these suppliers get the raw materials to make Tesla batteries?
Who Makes Tesla Batteries?
Tesla batteries are mostly sourced from two companies: Japanese company Panasonic and Chinese manufacturer CATL (Contemporary Amperex Technology). Tesla has used Panasonic batteries since 2014, while the partnership with CATL began in 2022.
Panasonic is the world’s fourth-largest manufacturer of EV batteries by market share. For a long time, the Japanese electronics company was Tesla’s sole battery supplier. However, that exclusive status ended when Chinese rival CATL began manufacturing Tesla batteries out of its factories in Shanghai.
A major part of the long-term partnership between Tesla and Panasonic has been the construction and operation of the largest lithium-ion battery factory in the world: Gigafactory Nevada.
Panasonic initially invested $1.6bn in the enormous factory situated east of Reno, Nevada, and has since invested hundreds of millions more to ramp up production. The factory began mass production of battery cells in 2017.
Panasonic has made various types of battery for Tesla. The company originally produced Tesla’s 18650 battery, before moving on to the newer 2170 batteries. In 2023, Panasonic will begin mass-producing the newest and largest 4680 batteries.
CATL is the world’s largest EV battery manufacturer by market share. The Chinese company produces batteries for several EV brands, including Tesla’s 4680 battery and the iron phosphate LFP battery, which is primarily used in Model 3 and Model Y vehicles.
Tesla has signaled its intentions to use more LFP batteries in the future, particularly in entry-level and shorter range Tesla models. LFP batteries are less efficient and give a shorter range than lithium-ion batteries. However, the technology is improving and LFP batteries are safer and cheaper.
Tesla also uses battery cells from LG Chem (2710 form, NCMA chemistry) and BYD (prismatic form, LFP chemistry) in their vehicles. The LG Chem cells are used in their long range and performance vehicles built in China (Shanghai) and the BYD blade cells are used in their standard range Model 3 and Model Y vehicles.
Who Are The Leading EV Battery Suppliers?
Though Tesla primarily sources their batteries from CATL and Panasonic, several other large battery companies supply batteries to other manufacturers of electric vehicles.
By market share, CATL is the leading EV battery manufacturer in the world, with a 34% market share in 2022. Panasonic is significantly further behind, in fourth spot, with a 10% market share.
| Rank | Company | 2022 Market Share | Country |
| #1 | CATL | 34% | China |
| #2 | LG Energy Solution | 14% | Korea |
| #3 | BYD | 12% | China |
| #4 | Panasonic | 10% | Japan |
| #5 | SK On | 7% | Korea |
| #6 | Samsung SDI | 5% | Korea |
| #7 | CALB | 4% | China |
| #8 | Guoxuan | 3% | China |
| #9 | Sunwoda | 2% | China |
| #10 | SVOLT | 1% | China |
Who Supplies Battery Material to Tesla?
While Tesla battery cells are manufactured by Panasonic, CATL, LG Chem, and BYD, there are many other companies involved in the battery supply chain. These include miners and refiners of essential battery materials such as lithium, cobalt, and nickel.
In 2022, Tesla released the following list of direct partners within its battery material supply chain.
| Supplier | Material | Country | Type |
| Albemarle | Lithium | Australia (mine); China (refinery) | Integrated Mine Site + Refiner |
| Livent | Lithium | Argentina (mine); China, USA (refinery) | Integrated Mine Site + Refiner |
| Ganfeng | Lithium | China | Refiner |
| Yahua | Lithium | China | Refiner |
| Guizhou CNGR | Cobalt, Nickel | China | Refiner |
| Hunan CNGR | Cobalt, Nickel | China | Refiner |
| Huayou | Cobalt, Nickel | China | Refiner |
| Glencore Kamoto Copper Company | Cobalt | Democratic Republic of Congo (DRC) | Mine site |
| Glencore Murrin Murrin | Nickel | Australia | Integrated Mine Site + Refiner |
| BHP Nickel West | Nickel | Australia | Integrated Mine Site + Refiner |
| Prony Resources | Nickel | New Caledonia | Mine site |
| Vale | Nickel | Canada | Integrated Mine Site + Refiner |