Tesla has reached an agreement with Chinese battery maker EVE Energy to supply energy storage batteries, according to LatePost.

EVE Energy's Malaysian factory is scheduled to begin supplying energy storage batteries to Tesla USA in 2026.

After Tesla's supplier expansion, CATL is said to remain the largest supplier to Tesla's energy storage business.

Prior to this, Tesla had entered into supply agreements with Panasonic, LG Energy Solution, CATL, BYD and Sunwoda.

EVE Energy is also the third company to supply energy storage batteries to Tesla USA, the other two being CATL and BYD.

In response, EVE Energy said, "The company's business [disclosure] is subject to the company's announcements."

Previously EVE Energy disclosed that the company and its Malaysian subsidiary had entered into a long-term supply relationship with a customer in the Americas for the supply of battery cells.

However, the company did not disclose the name of the customer and more information in the announcement.

The completion of Tesla's Shanghai energy storage gigafactory, which began construction at the end of May, is imminent and is expected to be completed by the end of this year.

The factory will go into operation in the first quarter of 2025, and the production of Megapack, a super-large electrochemical commercial energy storage system, will reach 10,000 units and the scale of energy storage will be nearly 40 gigawatt-hours after it goes into operation.

The current model adopted by Tesla's energy storage business is that it purchases battery cells from suppliers and assembles them into complete energy storage systems, such as Megapack and Powerwall.

The energy storage business is currently Tesla's fastest growing and most profitable business. According to Tesla's Q3 2024 earnings results, its energy storage business grew 52.4% year-over-year, with a gross margin of 30.5%, which is 10 percentage points higher than the gross margin of its automotive business (19.8%).