Tesla and BYD have reportedly moved their relationship to a new stage. According to Germany-based Teslamag, Tesla started manufacturing Model Ys with batteries from BYD at the gigafactory in Berlin last week, increasing its battery supplies.
Teslamag reported that Tesla received European approval for Model Y with BYD's LFP battery in August 2022. The battery had a 55kWh capacity and a range of 440 km under the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a global standard.
While Tesla is said to have begun making EVs with BYD's batteries, BYD said it had no comment on the matter, multiple Chinese media reported. According to Teslamag, BYD would be the EV maker's fourth battery supplier besides CATL, Panasonic, and LG Energy Solution.
As production in Berlin ramps up, Tesla sees vehicle sales rising in Germany. According to local vehicle registration, the company sold 2,429 EVs in the country last month, a 272.3% growth from 2022. Tesla's sales from January to April this year also increased by 109.2% from last year.
Last February, the EV maker reportedly placed an order for BYD's blade batteries for 204,000 vehicles annually, according to CnEVPost. In August, news surfaced that BYD had started supplying Tesla batteries to the latter's factory in Berlin.
South Korean media once reported that Tesla had decided not to use BYD's products due to quality issues. Both BYD and Tesla CEO Elon Musk said the information was not accurate.
In addition to being China's largest EV maker, BYD also has a leading position in battery manufacturing worldwide. According to data from South Korea-based SNE Research, 21.5GWh of global battery usage for EVs in the first quarter of 2023 can be attributed to the China-based company. It accounted for 16.2% of the market, the second most in the world.
SNE Research said BYD holds price competitiveness through vertical supply chain management integration, including in-house battery supply and vehicle manufacturing. With its popularity in the domestic market, BYD will likely see growth change as it scales up in the European and South Korean markets.
