Tesla and its Buffett-backed China subsidiary are nearing a deal on an electric vehicle

Tesla and its Buffett-backed China subsidiary are nearing a deal on an electric vehicle ...

Get Tesla Inc. Reportthe Austin EV powerhouse, which has a massive supply of batteries for its popular automobile lines in the near future.

BYD, a China-based company that manufactures its own electric automobiles and is supported by Warren Buffett, said it will soon provide Elon Musk''s clean-energy automobile with perhaps its most significant component.

"We are good friends with [Tesla Chief Executive] Elon Musk and we''re preparing to sell batteries to Tesla," Bloomberg News quoted BYD''s executive vice president, Lian Yu-bo, as saying in a video released by China State TV station CGTN.

Bloomberg said that a deal between Tesla and BYD had been discussed for some time. Reuters reported that BYD has worked on supply agreements with other automobile manufacturers, including Toyota.

According to BYD, lithium-ion-phosphate batteries are thinner and less bulky than conventional batteries, and are less likely to catch fire if they are damaged.

Tesla generates its own batteries and collects them via supply agreements with companies, including China''s CATL, LG Energy Solutions, and Panasonic (PCRFY).

TheStreet Recommends

Stock Market Today - 6/9: Stocks Fall as Treasury Yields Increase; the European Central Bank Holds Signals Close To QE, Alerts On Inflation

Ark Dumps Pfizer and Buys Tesla, According to Cathie Wood Watch

The stock of Meta Platforms has begun trading under a new META stick, completing ten years as FB on the Nasdaq.

In April, Reuters reported that worldwide EV demand remained steady even as vehicle prices increased.

Battery cells'' costs increased by more than 50% in the first quarter. These expenses were caused by supply-chain issues, sanctions on Russia due to Ukraine''s war, and investors'' speculation.

According to Bloomberg, BYD is also attempting to become a major player in mining lithium.

Nickel prices, another major component in battery production, have risen by 33.8% this year to around $27,700 per ton on the London Metals Exchange, while battery-grade lithium carbonate prices have increased by 60% from early 2021 levels.

Berkshire Hathaway Inc. Reportholding company invested in BYD in 2008 at Buffett (BRK.A)

Elon Musk Opens the Eye on China''s Birth Rate

You may also like: