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Tesla Willing To Supply Batteries To Other Auto Makers, Says Elon Musk

Tesla Willing To Supply Batteries To Other Auto Makers, Says Elon Musk
United States based electric car maker Tesla Inc is ready to license its software and supplying powertrains and batteries to companies, said the company’s Chief Executive Officer Elon Musk on Tuesday.
Previously, the company had spate partnership deals and had supplied batteries with two other auto makers Mercedes and Toyota Motor Corp.  
According to analysts and industry experts, the capacity and technology in battery manufacturing that has been developed by the US electric car maker has turned out to be a competitive advantage for the company compared to many of the legacy automakers.
“Tesla is open to licensing software and supplying powertrains & batteries. We’re just trying to accelerate sustainable energy, not crush competitors!” Musk said in message on Twitter.
The tweet did not make it clear the type of batteries it is willing to supply to other car automakers.
Currently, a joint venture for manufacturing of batteries for electric vehicles exists between Tesla and the Japanese firm Panasonic Corp. Batteries from China’s Contemporary Amperex Technology and South Korea’s LG Chem are also sourced for its vehicles by the electric car maker. The company has also launched a new project titled the “roadrunner” project for giving shape to its plans of construction of its own battery manufacturing facility at its Fremont, California.
Batteries are considered to be the most expensive and important component of any electric vehicle (EV) because it provides power for all other functions of the vehicles and there is rising cost of the raw materials used for making batteries for electric vehicles.
“The supply could lower the entry barriers for startup EV makers, posing a potential threat to legacy automakers, which have their own platforms,” said Park Chul-wan, a South Korean battery expert and a professor at Seojeong University.
“The strategy, if successful, will increase the EV market’s dependence on Tesla,” he said.
Manufacturing battery cells for its cares and test vehicles at an affordable price of the real limitation to the prospect of growth for Tesla, Musk said in a recent earnings conference call with investors. He had also said that the company will be expanding its business with Panasonic, CATL and LG Chem.
Previously in 2014, Musk had also said that Tesla would allow the use of its patent in electric vehicle development with other auto makers with the aim of speeding up the development of electric cars by all manufacturers throughout the globe.

Christopher J. Mitchell

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