Shenzhen-headquartered leading new energy vehicle and lithium-ion battery company BYD has confirmed a battery supply deal with US automaker Tesla, through a recent interview granted by senior management of the company.

Lian Yubo, executive vice president of BYD Group and director of Shenzhen BYD Daimler Technology, says during an interview conducted by Kate Kui Yingchun: "Tesla is a very successful company. BYD respects and admires Tesla. We are good friends with Elon Musk. We are going to supply batteries for them very soon." He also mentioned that Tesla is a good role model for Chinese domestic NEV companies.

Kate Kui Yingchun, who formerly held key positions in JD Group and the investment banking department of Bank of America Merrill Lynch, is currently a senior person working in financial media. This short clip was uploaded via her social media channel on 8 June.

In Tesla's 2022 first quarter report, it says: “Diversification of battery chemistries is critical for long-term capacity growth, to better optimise our products for their various use cases and expand our supplier base ... Nearly half of Tesla vehicles produced in Q1 were equipped with lithium iron phosphate (LFP) batteries.”

Currently, Tesla's battery suppliers mainly include CATL, LG, and Panasonic. According to SNE Research, during the first quarter of 2022, the top four electric vehicle battery makers were CATL, LG, BYD and Panasonic (in descending order).

Throughout this 72-second online clip, Lian Yubo didn't disclose details of this supply deal, such as quantity and battery type. Judging from BYD's current layout and its own technological advantages in LFP batteries, as well as Tesla's announced strategy and its current suppliers' situations, it seems more likely that BYD will supply LFP batteries to Tesla, Kallanish understands.