In the fierce competition in the field of new energy, the cooperation between EVE and Tesla has become the focus of attention in the industry. EVE, China's leading battery manufacturer, will officially enter Tesla's battery supply chain in 2026 to provide energy storage batteries for its U.S. market. This cooperation not only highlights the important position of Chinese battery companies in the global market, but also provides new impetus for the development of Tesla's energy storage business.
The globalization and diversification of Tesla's supply chain
In recent years, Tesla has continued to expand its battery supply chain to support its fast-growing demand for electric vehicles and energy storage products. At present, Tesla's main battery suppliers include Panasonic, LG New Energy, CATL, BYD, Sunwoda, and the latest addition, EVE. This diversification strategy allows Tesla to reduce risk in the face of tight supply chains while enhancing its bargaining power with suppliers.
EVE's addition is particularly strategic. Against the backdrop of global supply chains being challenged by geopolitics and trade barriers, Tesla's choice to cooperate with more Asian manufacturers reflects the flexibility and forward-looking nature of its supply chain layout.
Figure: EVE joined Tesla's battery supply chain
EVE's globalization process
EVE's international footprint is progressing steadily, and its battery plant in Malaysia is expected to start production in 2026, providing energy storage batteries for Tesla's U.S. market. This cooperation marks EVE's important step towards globalization and helps to enhance its competitiveness in the international market.
What is particularly noteworthy is EVE's technical advantages in the field of energy storage batteries, including high energy density and long-life design. These advantages not only meet Tesla's demand for high-performance batteries, but also lay the foundation for EVE to develop the North American market.
The market potential of the energy storage business
The rapid growth of Tesla's energy storage business has brought huge opportunities to EVE. According to Tesla's financial report for the third quarter of 2024, the installed capacity of its energy storage products reached 6.9GWh, a year-on-year increase of 73%. The gross profit margin of the energy storage business is as high as 30.5%, which is significantly higher than the 20% of its automotive business.
As a core product in the field of energy storage, Tesla's Megapack and Powerwall series are welcomed by the market for their modular design and efficient energy storage capabilities. With the increase in the proportion of renewable energy in the world, energy storage systems play an increasingly prominent role in balancing the load on the grid and improving energy efficiency. It is estimated that by 2030, the global energy storage market will exceed 500 billion US dollars, which provides a broad space for the development of EVE's cooperation with Tesla.
The strategic significance of the Shanghai Energy Storage Gigafactory
Tesla's investment in the Chinese market is also increasing, and its energy storage gigafactory in Shanghai is expected to start production in the first quarter of 2025, with an annual production capacity of 10,000 Megapack energy storage devices and a total energy storage capacity of nearly 40GWh. The construction of this factory not only demonstrates the "Shanghai speed", but also further strengthens Tesla's leading position in the global energy storage market.
It is worth noting that the Shanghai energy storage plant not only serves the Chinese market, but also exports its products to many countries around the world. This shows Tesla's confidence in Made in China, and also reflects China's key role in the global new energy industry chain.
Technological innovation and market trends
The core technology of Tesla's energy storage system lies in its high energy density battery and intelligent management system. Megapack, for example, has a single module capacity of up to 3MWh, which can efficiently support the storage and dispatch of large-scale renewable electricity.
At the same time, the demand for global energy storage market is diversifying. Tesla's product line is expanding, from Powerwall, which supports home power consumption, to Megapack, which serves commercial and grid-scale energy storage needs. EVE's participation in this field will help improve the performance and economics of energy storage systems, thereby further driving market growth.
The far-reaching significance of cooperation
EVE's participation in Tesla's supply chain is not only a successful case of business cooperation between the two parties, but also an important part of the transformation of the global energy structure. Driven by global carbon neutrality goals, energy storage technology is seen as the key to solving the problem of renewable energy volatility.
The partnership also provides new growth opportunities for Chinese battery companies. By cooperating with an industry leader like Tesla, EVE will gain more market recognition and technology accumulation, laying a solid foundation for its future development.
Conclusion
EVE's cooperation with Tesla is a model of deep integration between Chinese battery companies and international new energy giants. This cooperation not only brings more impetus to Tesla's energy storage business, but also demonstrates the rising power of Chinese new energy companies in the global industrial chain.
With the continuous growth of the global energy storage market demand, we can expect more breakthroughs from EVE and Tesla in technological innovation and market expansion. At the same time, Tesla's energy storage gigafactory will also become an important engine to drive the global energy transition. In the future, the cooperation between EVE and Tesla will surely bring more surprises and opportunities to the global new energy market.
