Tesla Partners With Findreams From BYD, Will Supply Battery Cells To Shanghai Megafactory

Illustration of the Tesla Megapack. (Photo: ArenaEV)

JAKARTA - Tesla is expanding its energy storage business in China by partnering with battery unit maker BYD, the FindDreams, for its newly built Megafactory needs in Shanghai.

Citing from the CNevpost page, Friday, June 7, according to a report, FinDreams will be a new cell supplier for its energy storage business and has reached an agreement with Tesla in March.

"FinDreams will start supplying Tesla cells for energy storage in the first quarter of next year," according to a report from LatePost.

The production plant of Tesla's energy storage facility in Shanghai, called Megafactory, began construction on May 23 and was the company's first energy storage project outside the United States.

The factory is located in the Lingang Pudong area, Shanghai, which is also home to Tesla's electric vehicle (EV) factory in China that produces Model 3 and Model Y.

Tesla's energy storage business model involves procuring cells from suppliers and assembling them into a complete energy storage system, including Megapack, a large-scale energy storage system for office buildings and factories, and Powerwall for homes.

Previously, Tesla had also partnered with CATL to become the main supplier of its energy storage cells, and now Findreams will join CATL by securing more than 20 percent of orders.

As is known, the Tesla energy storage plant in Shanghai is designed to have an annual capacity of 40 GWh, which means an annual supply of up to 8 GWh from Findreams.

Previously, Tesla replaced its energy storage system cells from a high-cost lithium ternary battery to a low-cost lithium iron phosphate (LFP) battery in 2021, and gradually shifted its energy storage cell supplier from LG Energy Solution to CATL.

Throughout 2023, CATL became Tesla's only energy storage cell supplier. Perhaps due to the desire to balance costs and have greater bargaining power, Tesla has decided to bring Findreams as a new supplier.

"BYD gives Tesla the best price that approaches the fee line," said one source who knows this partner.