When you\u2019re producing hundreds of thousands of electric vehicles every year, as Tesla does, the relationship with your battery suppliers is absolutely critical. <\/p>\n\n\n\n
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\u2019s leading EV battery manufacturers.<\/p>\n\n\n\n
But who are Tesla\u2019s key battery suppliers? Which batteries do they manufacture? And where do these suppliers get the raw materials to make Tesla batteries<\/a>?<\/p>\n\n\n\n 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.<\/strong><\/p>\n\n\n\n Panasonic<\/strong> is the world\u2019s fourth-largest manufacturer of EV batteries by market share. For a long time, the Japanese electronics company was Tesla\u2019s sole battery supplier. However, that exclusive status ended when Chinese rival CATL began manufacturing Tesla batteries out of its factories in Shanghai.<\/p>\n\n\n\n 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. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n Panasonic has made various types of battery for Tesla. The company originally produced Tesla\u2019s 18650 battery, before moving on to the newer 2170 batteries. In 2023, Panasonic will begin mass-producing the newest and largest 4680 batteries<\/a>. <\/p>\n\n\n\n CATL<\/strong> is the world\u2019s largest EV battery manufacturer by market share. The Chinese company produces batteries for several EV brands, including Tesla\u2019s 4680 battery and the iron phosphate LFP battery, which is primarily used in Model 3 and Model Y vehicles.<\/p>\n\n\n\nWho Makes Tesla Batteries?<\/h2>\n\n\n\n