Samsung to supply batteries for Tesla’s Model 3 image

Samsung’s division that makes batteries and the electric car maker Tesla are in negotiations over a partnership, report says.

In contrast with other electronic giants such as Apple, Panasonic or LG, Samsung has decided quite late to take advantage from the huge business potential offered by the automotive industry. But the company is committed to intensify its efforts and to become more involved with its divisions, such as the software services provider Samsung SDS and the battery maker Samsung SDI. The latter one is now reportedly in some advanced talks with Tesla to supply batteries for the upcoming Model 3, as well as its energy storage products, according to Reuters.

The electric automaker already has a deal with Japan’s Panasonic, but the orders hype around the 35,000-dollar model means that more batteries will be needed. On the back of the 373,000 reservations for its Model 3, Tesla has set a goal to produce 500,000 cars in 2018, two years earlier than the original plan. The Japanese financial newspaper Nikkei reported this week that a substantial volume of Samsung SDI’s battery cells has already arrived at Tesla to be fully tested. Tesla is also close to start its own battery production, as it has put in around 5 billion dollars in its Gigafactory located outside of Reno, Nevada.

Among the major automakers, Samsung entered into a partnership with Audi towards the end of 2015, to supply memory chips for the brand’s dashboard, infotainment and advanced driver assistance applications.

Via Reuters