Sources said Monday that Tesla is planning to use LG Chem's NCMA (nickel, cobalt, manganese, aluminum) batteries in its Model Y produced in China.

The NCMA battery contains up to 90% nickel, and the amount of cobalt is expected to drop significantly.

Affected by this news, Tesla battery supplier Contemporary Amperex Technology Co Ltd (CATL) fell 5.72% at the close of trading on June 7.

In response, Tesla China said that no more information was available at the moment.