According to a recent report by Teslarati, Tesla officially signed a contract in China with South Korean battery maker LG Chem. Reports suggest LG Chem will supply batteries for the upcoming Model Y Dual Motor vehicles set to hit the Chinese market soon. The batteries will be of the NCM variety.

This news seems to have first hit social media via Tesla fan @Ray4Tesla on TwitterAs you can see below, Ray tweeted about the future partnership between LG Chem and Tesla's Gigafactory in Shanghai. 


Ray also says CATL, China's number one battery maker, may still supply the electric automaker with LFP (Lithium Iron Phosphate) battery cells for the less expensive, Model Y Standard Range Plus. This makes sense since Tesla already uses CATL for its Model 3 Standard Range Plus battery supply.

While it could be some time before Tesla begins producing the Model Y in China, the automaker appears prepared to do so almost immediately. Phase two of its Gigafactory production, the area responsible for the upcoming Model Y, is near complete. Tesla has also already registered the car with the responsible government agencies in China. At this point, the automaker is just waiting for mass production approval.

Tesla plans to make its own batteries, but it made it clear at its Battery Day presentation that it will still work with battery suppliers. It may also contract some to help produce its upcoming 4680 cells.

Tesla has a goal to produce some 550,000 vehicles in China next year, 250,000 of which will be Model Y crossovers. To reach a number that high, it seems it will have to rely on battery makers like LG Chem and CATL, and perhaps others.

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