Shares in Samsung SDI tumbled 8 percent on Wednesday after surging 6.3 percent a day earlier.
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Samsung SDI – the battery making wing of Samsung – is reportedly in talks with Tesla to supply the carmaker’s Model 3 with batteries. The volume is considered large for a pilot project, suggesting that before full-scale adoption, the company will use the batteries for a final test, says Nikkei.
Japan’s Panasonic has been nearly an exclusive supplier of automotive-grade lithium-ion battery cells ever since the Silicon Valley company began churning out electric vehicles in 2008. “The money that will be saved from the sale of the fuel cell business will be used to boost energy solution-related businesses such as batteries for electric vehicles (EVs) and energy storage systems”.
Earlier, media reports from South Korea claimed that Samsung SDI’s battery cells shipping to an Oakland port was destined for Tesla’s development facility. The South Korean company and Tesla are likely to work out a supply deal, though nothing has been decided yet, said the person, who asked not to be identified because the matter is private. “Tesla needs a new partner like Samsung SDI to induce the lowering of battery prices and enhance supply flexibility”.
When Tesla Motors Inc (NASDAQ:TSLA) recently unveiled their Model 3 electric vehicle, it took the market by storm.
The paper noted in the report published June 5 that a batch of Samsung SDI’s battery cells had already arrived at Tesla headquarters in Palo Alto, California.
However, Tesla should have another source of supply except Panasonic in order to produce one million units per year, 20 times of the current output a year.
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LG Chem advanced 1.1 percent to close at 265,500 won on Tuesday.
