COVID-19 has highlighted the issues EV manufacturers face when the supply chain is challenged. Tesla, Inc. TSLA seemed to have removed the risk related to battery supply from the equation.
Tesla has for the first time Access to all battery cells It needs, martin vicha, Tesla’s vice president of investor relations said, according to Business Insider. He made the comments at an invite-only Goldman Sachs Tech Conference.
About 90% of battery cells are used in Tesla’s electric vehicles, and the rest goes into its energy storage products, the report said, citing the executive.
“For the first time in my memory, we have access to all the supplies we need for both companies,” he reportedly said.
See also: Tesla battery supplier CATL said it will actively explore locations for U.S. manufacturing plants
Viecha attributed Tesla’s improved access to supplies to expanding its supplier base in recent years. Out of Panasonic Holdings Corp PCRFYthe company has expanded its battery suppliers to include China CATL and South Korea’s LG Chem, he added. The executive also mentioned the possibility of adding more suppliers.
The EV industry can only grow as fast as battery supply improves, he reportedly said. The supply chain included not only the manufacture of cells and battery packs, but also the design of batteries and the mining and refining of lithium, nickel and other raw materials, he added.
Price promotion: Tesla closed Monday’s session up 1.58% at $304.42 Benzinga Pro data.
