Tesla has filed a lawsuit against its former supplier Matthews International in California federal court, accusing the company of stealing trade secrets related to Tesla’s battery-manufacturing process and sharing them with competitors. The lawsuit, filed on Friday in the U.S. District Court for the Northern District of California, alleges that Matthews owes damages that Tesla estimates will exceed $1 billion for misusing its trade secrets related to dry electrode battery manufacturing technology.
Matthews responded to the lawsuit in a statement on Monday, calling Tesla’s claims a “new tactic” in their efforts to bully Matthews and take its valuable intellectual property. The company stated that it would vigorously defend itself against the allegations.
According to the complaint, Matthews began supplying Tesla with manufacturing machinery in 2019. Tesla shared secrets with Matthews related to dry-electrode coating, a technology that Tesla claims can reduce the size, cost, energy consumption, and production cycle time of battery manufacturing plants, while also improving the energy density and power of battery cells.
The lawsuit alleges that Matthews shared Tesla’s innovations with unnamed competitors by selling machines and other technologies embodying Tesla’s trade secrets. Additionally, Matthews is accused of claiming Tesla’s inventions as its own in patent filings, which have revealed confidential Tesla information.
Tesla is seeking to block Matthews from further misusing its trade secrets and is requesting that Matthews hand over its patent applications. The company is also seeking monetary damages in excess of $1 billion.
