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Tesla’s deal with CATL as Giga Shanghai’s battery supplier officially confirmed
After a long period filled with rumors of an impending partnership, Tesla and Contemporary Amperex Technology Co Ltd. (CATL) have officially signed an agreement for Giga Shanghai’s battery cell supply.
The two companies’ recently-signed deal is currently set for two years, according to Reuters. Tesla will ultimately decide how many batteries it will purchase between July 2020 and June 2022. This will likely depend on the battery needs of the company as it ramps Model 3 and Model Y production locally.
Tesla had previously announced its partnership with CATL, albeit informally. The company stated that they had come to an agreement with two suppliers for China, CATL and LG Chem, which has a facility close to Giga Shanghai. Panasonic, Tesla’s long-term battery partner, will not be contributing its resources for Giga Shanghai’s operations, at least for now.
Giga Shanghai is already operational, and local deliveries of the Made-in-China Model 3 have begun. The company held initial deliveries at an event in Giga Shanghai on December 30, 2019, and this was followed by customer deliveries soon after. During the handover ceremony for local customers, Elon Musk announced the launch of Tesla’s Model Y program in China as well.
Tesla is planning to make a big impact in China’s auto market with Giga Shanghai. The country hosts the largest automobile market in the world, with around 28 million cars bought locally in 2018. This is a far cry compared to the United States’ 17.27 million vehicles.
Tesla has introduced several updates to its strategy in China, such as reducing the price of its vehicles to make them more competitive in the market. CEO Elon Musk has also noted that Tesla was able to cut its operating costs by removing tariffs, purchase tax exemption, local cost supply, and getting rid of the need to export the vehicles from the US to China. Tesla believes that the company will be able to completely localize its supply chain for Chinese production by the end of 2020 as well.
Giga Shanghai is currently producing at a run rate of 3,000 Model 3s a week. Eventually, the company plans to boost the plant’s production rate to 500,000 vehicles a year. The addition of new battery manufacturers will help Tesla ramp this production rate to its eventual goals. With demand increasing in the world’s largest car market, Tesla is poised to make a strong presence in China with more than ample growth in 2020.
News
Tesla seeks approval to test FSD Supervised in new Swedish city
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
Tesla has applied to conduct local Full Self-Driving (Supervised) testing in the city of Jönköping, Sweden.
As per local outlet Jönköpings-Posten, Tesla has contacted the municipality with a request to begin FSD (Supervised) tests in the city. The company has already received approval to test its Full Self-Driving (Supervised) software in several Swedish municipalities, as well as on the national road network.
Sofia Bennerstål, Tesla’s Head of Public Policy for Northern Europe, confirmed that an application has been submitted for FSD’s potential tests in Jönköping.
“I can confirm that we have submitted an application, but I cannot say much more about it,” Bennerstål told the news outlet. She also stated that Tesla is “satisfied with the tests” in the region so far.
The planned tests in Jönköping would involve a limited number of Tesla-owned vehicles. Trained Tesla safety drivers would remain behind the wheel and be prepared to intervene if necessary.
Tesla previously began testing in Nacka municipality after receiving local approval. At the time, the company stated that cooperation between authorities, municipalities, and industry enables technological progress and helps integrate future transport systems into real-world traffic conditions, as noted in an Allt Om Elbil report.
If approved, Jönköping would become the latest Swedish municipality to allow local Full Self-Driving (Supervised) testing.
Tesla’s Swedish testing program is part of the company’s efforts to validate its supervised autonomous driving software in everyday traffic environments. Municipal approvals allow Tesla to gather data in urban settings that include roundabouts, complex intersections, and mixed traffic conditions.
Sweden has become an increasingly active testing ground for Tesla’s driver-assistance software in Europe, with regulatory coordination between local authorities and national agencies enabling structured pilot programs.
Elon Musk
Microsoft partners with Starlink to expand rural internet access worldwide
The update was shared ahead of Mobile World Congress.
Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.
The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.
In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.
The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.
Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.
Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.
Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure.
Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.
Elon Musk
Tesla expands US LFP battery supply with LG Energy Solution deal: report
The report was initially published by TheElec, citing industry sources.
LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility.
The report was initially published by TheElec, citing industry sources.
LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.
LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.
Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.
Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.
For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.
Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.