●What is the news ?
•Tesla Inc is in talks with Chinese battery maker EVE Energy Co to add the firm to its Shanghai factory supply chain, four people familiar with the matter said, as it seeks to boost procurement of lower cost batteries.
•EVE would become the second supplier of LFP batteries to Tesla after China's Contemporary Amperex Technology Co (CATL).
•The talks come as Tesla faces growing competition from Chinese rivals such as Nio and Li Auto, as well as mounting cost pressure
●Things to know more
•EVE makes lithium iron phosphate (LFP) batteries, which are cheaper to produce because they use iron instead of more expensive nickel and cobalt.
• As per sources , Tesla has been working closely with EVE to get its batteries to meet its requirements, as it aims to bring in the supplier as, what one of the sources called a "check and balance" against CATL.
•One of the sources said Tesla could start using EVE's LFP batteries in the China-made Model 3 and Model Y vehicles within the next six months and EVE had ramped up production in order to be prepared for the possible partnership.