Lithium-ion battery maker Contemporary Amperex Technology (CATL) has announced it has extended its battery supply agreement with U.S. electric car manufacturer Tesla.

Under the new agreement, CATL will continue to supply Tesla with lithium-ion power battery cells from January 2022 to December 2025.

Previously, Tesla and CATL signed a two-year contract (from July 2020 to June 2022). Under the agreement, CATL will supply batteries for the Model 3 produced by Tesla at its Shanghai plant.
On Monday, CATL announced that to further extend and deepen the friendly cooperation between the two companies, it signed a Production Pricing Agreement with Tesla on June 25, 2021, based on the above agreement.

The new agreement can be seen as an extension of the agreement signed between CATL and Tesla last year. CATL indicated that the signing of the new agreement represents Tesla's recognition of the quality of CATL's power battery products and production capacity and helps strengthen the long-term and stable relationship between it and Tesla, which is in the company's interest and its shareholders.