Supply chain tweaks Analysts said Tesla may have tweaked its battery supply chain to meet both battery mineral and battery component requirements for federal subsidy. Tesla may have dropped CATL in favor of Panasonic for US-made Model 3 Rear Wheel Drive, the cheapest version, Benchmark Mineral Intelligence analyst Caspar Rawles said. The subsidy value would by far outpace the saving of using cheaper iron-based cells used by CATL, he said. “It is highly likely it is Panasonic but there may be some concerns around cell availability if they need to supply enough for all US Model 3s,” he said. Tesla used CATL’s LFP battery cells for its Model 3 Rear Wheel Drive and nickel-based cells from an unidentified supplier for its Model 3 Long Range, analysts said. Analysts said Elon Musk’s Tesla may have tweaked its battery supply chain to meet both battery mineral and battery component requirements for federal subsidy. AFP via Getty Images Panasonic has a battery cell factory in Nevada, meeting federal requirements on local battery components. CATL and other suppliers like LG Energy Solution do not have factories to make Tesla cells in the United States. When asked about Tesla and whether there had been a change in its supply arrangements to North America, CATL said, “The strategic partnership between the company and customers has not changed and will continue to deepen and improve.” “Tesla may have switched to manufacturing those battery packs in the US while still using Chinese cells,” Morgan Stanley analyst Adam Jonas said. Panasonic Holdings on Tuesday said it plans to expand production of electric vehicle batteries at the Nevada factory jointly operated with Tesla by 10% within three years. The Japanese supplier in May said it had pushed back the timetable for the rollout of the 4680 batteries it is producing for Tesla and indicated that its existing 2170 battery cell would meet immediate demand needs. Tesla has also started delivering China-made Model 3s and Model Ys to Canada, freeing up some capacity for US-made models. Filed under