In addition to this agreement, Tesla's Shanghai Megafactory is set to begin operations in early 2025, focusing on selling Megapacks in both Chinese and international markets.

With this new agreement, EVE Energy becomes Tesla's sixth battery supplier, joining a diverse network that includes Panasonic, LG Energy Solution, CATL, BYD, and Sunwoda.

Tesla has signed a battery supply agreement with EVE Energy, a Chinese lithium cell manufacturer, for batteries from its upcoming factory in Malaysia.

The parent company of EVE Energy stated that this deal would enhance its position in the global energy storage market.

Recent advancements in LFP technology have made these batteries more suitable for affordable electric vehicles.

Previously, Tesla relied solely on Panasonic for battery cells, which were primarily cylindrical lithium-ion cells used in personal electronics before Tesla's innovation in electric vehicles.

EVE Energy is the third company to supply energy storage batteries to Tesla in the U.S., following CATL and BYD.

While EVE Energy confirmed the supply agreement, they noted that specific business details are subject to official announcements.

Although EVE Energy has not explicitly named Tesla as the customer, they have confirmed a supply agreement with a 'customer in the Americas,' which is widely speculated to be Tesla.

Historically, Tesla has sourced LFP cells from CATL and BYD in China, and LFP batteries are known for being cheaper than nickel-rich alternatives, despite having lower energy density.

On December 26, 2024, EVE Energy's shares rose by 6.6% following the announcement of a long-term supply commitment from a U.S. customer, further fueling speculation about Tesla's involvement.

This information regarding the supply agreement was reported by the Chinese media outlet LatePost.