On Sunday, Eve Energy Co, a Chinese lithium battery manufacturer, denied a Reuters report in talks with Tesla about a lithium iron phosphate (LFP) battery supply deal.
The agreement would see Tesla add Eve Energy to its supply chain at its Shanghai Gigafactory. According to Reuters, it is on track to secure Tesla, the second LFP battery supplier after Contemporary Amperex Technology Co (CATL), citing unnamed sources.
According to Reuters, the deal is expected to be finalized by the US-based electric carmaker in the third quarter.
Eve Energy denied the Reuters report in a filing with the Shenzhen Stock Exchange on Sunday. Eve Energy’s Shenzhen-listed shares rose 9.75 % on Friday, leading to a near-2% rise in the lithium battery sector. CATL’s stock rose 2.25% on Friday.
LFP batteries are less expensive to manufacture because they use iron rather than nickel and cobalt, which are used in more expensive electric vehicle batteries. Eve Energy, a battery supplier to Chinese EV startup Xpeng, announced battery supply partnerships with established automakers BMW and Daimler AG.