Electric car maker, Tesla, and Japan’s Panasonic have signed a three-year pricing deal relating to the manufacture and supply of lithium-ion battery cells. The agreement sets the specific terms between the two parties concerning pricing, planned investments and new technology.
The deal, which runs from 1st April 2020 until 31st March 2023, sets the terms for production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the agreement.
Furthermore, Tesla also signed an amendment to the company’s general terms and conditions of its 2014 partnership agreement with Panasonic, which modifies the term to expire ten years after Panasonic achieves certain manufacturing milestones.
Yahoo Finance reports that in November 2010, Panasonic invested $30 million in a private placement of Tesla common stock.
Last week, the Chinese government reportedly gave the green light for the automaker to build model 3 vehicles in the country, equipped with lithium iron phosphate (LFP) batteries. Tesla is said to be in advanced talks to use LFP batteries from CATL that contain no cobalt – one of the most expensive metals in electric vehicle (EV) batteries – in cars made at its China plant.
The automaker tripled its Model 3 sales in China in May following a spike in demand, after it cut its prices by about $2,818.
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