Tesla Motors is reportedly having discussions with Samsung SDI as an additional battery supplier for its upcoming new electric car Model X.
According to Reuters source, the deal is part of the planned expansion of Tesla Motors. However, it is most likely that the deal will not be finalized soon. The two companies confirmed on Friday that there were indeed such discussions.
Samsung SDI is one of Samsung Electronics unit focused on the manufacturing of LCD, PDP, and AMOLED TVs. In 2000, it expanded to the development of lithium ion battery (LB) technology and became the top maker for that field. This may explain Tesla's interest in having the company as one of their battery suppliers. Tesla is known for its electric car Model S sedan at $70,000.
The deal proves that Tesla is not giving up its plans of expanding the business of all-electric battery cars despite predictions that consumers consider fuel-cell cars as an alternative to gasoline-powered cars. And this was fueled more with a recent report of a Tesla model S bursting into flames in a Seattle street.
Samsung SDI spokesperson Kim Sang-eun declined to give more details to Reuters since "Nothing has been decided."
Tesla spokesperson Liz Jarvis-Shean confirmed the deal but clarified that Samsung SDI is not their only option. "We continually evaluate best (battery) cells and technologies from all manufacturers," she told Reuters.
However, Reuter sources revealed that the two companies are almost done, about "90 percent complete," and will be closing the deal soon. Apparently, Samsung SDI will be supplying battery to Tesla's Model X which has a target release date of 2014. Tesla was required to buy other components from Samsung SDI aside from the battery to seal the deal.
Tesla's primary battery supplier for model S is Panasonic Corp. Samsung SDI, however, supplies battery to BMW's i3 electric car.
