China's BYD denies supplying blade batteries for Tesla
Tesla Model Y. ©Tesla

Asian Tech Press -- Chinese automaker BYD Co Ltd (BYDDF: OTC US) denied to media on Wednesday that it would supply blade batteries for US-based electric vehicle maker Tesla Inc.

Earlier, it was reported that BYD will soon supply blade batteries to Tesla in the second quarter of next year, and Tesla models with blade battery has entered the C sample testing stage. And Model Y may be the first Tesla vehicle equipped with blade batteries.

ATP had asked Tesla CEO Musk via Twitter if the news was true, but did not receive a reply. And within a few days, no response was heard from Tesla about the news.

BYD responded on Wednesday that the company has never told media outlets that it will supply blade batteries to Tesla, nor has it said that blade batteries will be used in the Model Y.

Half a month ago, Musk said during the company's second-quarter earnings call, Tesla will gradually shift to the use of lithium iron phosphate batteries, and two-thirds of Tesla cars will use lithium iron phosphate batteries, one-third may use nickel batteries.

At present, Tesla is mainly supplied with batteries in China by LG Chem's Nanjing plant and Contemporary Amperex Technology Co Ltd (CATL). Some industry analysts said that in order to reduce the impact of supply chain fluctuations, Tesla, Volkswagen and other automakers will not allow a single battery supplier accounted for more than 50%.

That is, if CATL solely supply lithium iron phosphate batteries for Tesla, its 66.7% share is clearly beyond the reference value of risk. Therefore, it is urgent for Tesla to find a new supplier of such batteries.

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