Large US manufacturer orders LFP cells from Gotion
Chinese battery cell manufacturer Gotion High-Tech has signed a supply agreement with a major publicly traded US automaker to supply it with LFP cells. Gotion is not disclosing the name of the customer, but there are suggestions it could be Tesla.
The supply agreement covers the years 2023 to 2028 and includes a total volume of at least 200 GWh. Gotion will produce LFP batteries in China and export them to the customer. The partners also plan to localize the production and supply of LFP batteries in the US, as well as jointly explore the possibility of establishing a joint venture in the future.
If the customer is indeed Tesla, Gotion would be the third Chinese cell supplier from which Tesla orders lithium iron phosphate cells. The battery cells for the current base models of the China-built Model 3 and Model Y (formerly called Standard Range +) come from CATL. In recent months, there have been repeated reports linking Tesla to BYD where Tesla has reportedly already ordered a smaller quantity of “blade” batteries.
Because the transaction involves trade secrets, Gotion is not disclosing basic counterparty or product-related information. This obviously means nothing is being said about which models the LFP batteries will be used. According to the English language tech news site in China, cnevpost, Gotion has said that the cells in question “will be used in the customer’s electric vehicle and other applications in the US and global markets.” This wording leaves a lot open and may suggest uses in stationary energy storage as well as electric vehicles.
Although the order apparently involves the formation of a joint venture, Gotion is not providing more details about the potential joint venture with the new customer.
Gotion itself has been pushing its expansion tremendously in recent months, entering into a number of collaborations and unveiling new developments. In September, it announced plans to reach a production capacity of 300 GWh by 2025 – three times as much as previously planned. In addition, the company revealed an LFP cell with a high nickel content that can achieve an energy density of 302 Wh/kg at cell level and 200 Wh/kg at system level.
Just last week Volkswagen’s finalised its position as the largest shareholder in Gotion. While the relationship with Volkswagen has become increasingly close – Gotion has replaced Northvolt as its partner for battery cell production in Salzgitter and may build VW’s unit cell in China – the company has also entered into collaborations with other automakers. In November, a battery deal was signed with Great Wall, and there has also been a partnership with VinFast since August 2021.
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