Back in August 2021, there were rumors that BYD is negotiating with Tesla to supply batteries. At the time, the Chinese company denied such reports, however according to Reuters, now BYD Vice President Lian Yubo said in an interview with CGTN that BYD really intends to supply batteries to Tesla.
"We are now good friends with Elon Musk because we are preparing to supply batteries to Tesla very soon", - said Lian Yubo.
Details of the deal, including scope and type of batteries, are not yet available. One can only assume that Tesla is interested in new lithium-iron-phosphate (LFP) batteries BYD Blade.
Another question is whether Tesla needs these LFP batteries for electric vehicles and/or stationary energy storage systems such as Megapack.
Tesla now has several battery suppliers: China's CATL, Japan's Panasonic and Korea's LG Energy Solution.