Tesla announces a new gigafactory using equipment from CATL, the world’s largest cell manufacturer, to bolster LFP production in the US.

Tesla is looking to expand its LFP cell-making capabilities at its gigafactory in Nevada by buying idle equipment from the Chinese cell maker. The facility is expected to target an initial capacity of 10 GWh, which could go into operation by 2025. The cells from this facility are targeted for use in Tesla’s stationary storage applications such as the Megapack and Powerwall. However, future facility expansions to target LFP cells for EVs are not inconceivable, especially given how vocal Tesla has been with targeting low-cost EVs in the US.

The report crucially states that CATL will not be involved in production and is simply supplying equipment to Tesla, which is likely a move to circumvent suspicion surrounding Chinese involvement in US battery production. The US has already seen resistance towards various Chinese-backed US battery supply chain operations from local governments and populations. With CATL having strong links to Chinese government this would no doubt raise concern amongst certain circles if it were publicly joining forces with the US’s largest EV manufacturer on US soil. The extent of CATL’s involvement in the project remains to be seen, but CATL’s expertise in high-quality LFP cell manufacture will not go unnoticed.