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Samsung SDI in talks with Tesla over battery supply

 Samsung SDI, a battery business arm of Samsung Group, is reportedly in talks with U.S. electric car manufacturer Tesla Motors over a battery supply deal, according to news reports.

Freights containing 120 tons of Samsung SDI battery cells arrived at the Oakland port in April and recently at Tesla’s factory in California, the reports said. The batteries, called the Samsung SDI 18650, are cylindrical ones measuring 18 millimeters in diameter and 65 mm in height.

The quantity, which is excessive if just for testing, has spurred speculation that the Samsung Group affiliate has started to supply its batteries for the first time for Tesla’s projects, including those for its sport car Roadster or the Model 3, one of the most affordable electric vehicles of the U.S. firm.

Tesla Motors’ latest electric vehicle Model 3. (Tesla)
Tesla Motors’ latest electric vehicle Model 3. (Tesla)

Samsung SDI declined to confirm if the company has sealed the supply deal with the electric car company.

The U.S. electrical vehicle firm, which has increased its annual manufacturing volume for EVs to 1 million units, plans to produce 500,000 units of its Model 3 in 2018.

It is forecast that Tesla will need around 250 million battery cells for the Model 3 by then.

Around 400,000 people worldwide have made preorders for the new EV.

By Kim Young-won(wone0102@heraldcorp.com)
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