BYD’s battery manufacturing unit, FinDreams, has reportedly secured a deal to supply cells to Tesla’s energy storage business in China, according to a recent report.
The agreement, struck in March, will see FinDreams supply Tesla’s energy storage product manufacturing plant in Shanghai, as reported by LatePost today. The supply of cells for energy storage is expected to commence in the first quarter of next year.
Tesla’s energy storage facility, known as the Megafactory, broke ground on May 23 in the Lingang area of Pudong, Shanghai. This marks Tesla’s first energy storage project outside the United States and is located alongside Tesla’s electric vehicle (EV) factory in China.
The Megapack, a large-scale energy storage system, is the primary product line planned for production at the Shanghai plant. While CATL remains the primary supplier of cells for the Megapack, FinDreams will serve as an alternative supplier, with a share of supply exceeding 20 percent, according to sources familiar with the matter.
Tesla’s decision to bring in FinDreams as a new supplier is seen as a move to balance costs and gain more bargaining power. BYD reportedly offered Tesla the best price, close to the cost line, according to a source close to BYD.
The Shanghai Megafactory is designed to have an annual capacity of 40 GWh, with FinDreams potentially supplying up to 8 GWh annually, representing an annual order value of up to RMB 3.5 billion ($480 million).
The energy storage business is BYD’s fastest-growing segment, with FinDreams sales reaching 28.4 GWh in 2023, a more than 136 percent year-on-year increase.
CATL and FinDreams are key players in the global energy storage battery cell market, with market shares exceeding 35 percent and 13 percent, respectively, in 2023, according to InfoLink data cited in the report.
