Tesla Model 3 driving on a road through plains with mountain back drop

Tesla to supply batteries to rival carmakers

Tesla chief executive Elon Musk has said his company is willing to supply its batteries, powertrains and software to other car manufacturers in order to accelerate EV adoption.

The American electric carmaker has previously supplied batteries – an area in which Tesla has forged a market-leading position – to Mercedes and Toyota under separate partnership deals.

Using Twitter to make his announcement, Musk wrote: “Tesla is open to licensing software and supplying powertrains and batteries. We’re just trying to accelerate sustainable energy, not crush competitors!”

Tesla is open to licensing software and supplying powertrains and batteries. We’re just trying to accelerate sustainable energy, not crush competitors!

Elon Musk – CEO Tesla Inc

However, there are no details as yet about the types of battery that Tesla might supply. The company currently runs a battery joint venture with Panasonic, while also sourcing batteries from Contemporary Amperex Technology in China and LG Chem in South Korea. Tesla is also building its own battery manufacturing facility as part of its Roadrunner Project, based at its factory in Fremont, California.

Supplying batteries – which are the most expensive component in an electric vehicle – to other carmakers could have the effect of not only lowering the cost of developing EVs for start-up companies, but would also confirm Tesla’s pre-eminent position in the field, potentially even increasing the car industry’s reliance on the company.

In a recent Tesla earnings conference call, Musk said that the real limitation to the company’s growth is battery cell production at an affordable price. He then said the company would expand its business with Panasonic, CATL and LG Chem.

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