BYD FinDreams Battery Secures Orders from Tesla Shanghai Energy Storage Battery

On June 5, it is reported that BYD's subsidiary FinDreams Battery reached a supply agreement with Tesla for the Shanghai energy storage factory in March this year, and will supply energy storage cells to Tesla in the first quarter of next year.

The mode of Tesla's energy storage business is to purchase battery cells from suppliers and assemble them into complete energy storage systems, such as the Megapack energy storage solution for large-scale commercial industries and the Powerwall energy storage system for homes. Megapack contributes about 80% of the revenue to this business. And each Megapack unit can store more than 3.9MWh of energy, which can satisfy the electricity demand of 3600 households for an hour.

It is known that the Tesla Shanghai Energy Storage Factory currently only plans for the Megapack product line. The first supplier of the batteries for this factory has been determined to be CATL, and the second supplier is FinDreams Battery.

According to a source close to the industry, FinDreams Battery's share of supply exceeds 20%. On May 23 this year, the Tesla Shanghai Energy Storage Super Factory officially started construction and is expected to be put into production in the first quarter of 2025. After production, the output of the Megapack, a large-scale electrochemical commercial energy storage system, will reach 10,000 units, with an energy storage scale of nearly 40GWh. Therefore, the order corresponding to the full production status of FinDreams Battery exceeds 8GWh of supply. According to industry price calculations, the annual order value is about 3.5 billion RMB. So far, the BYD Group has not responded to this matter.

It is reported that CATL was once Tesla's only supplier of energy storage cells. For the sake of balancing costs and grasping more bargaining power, Tesla decided to introduce FinDreams Battery as a new partner.  A person close to BYD stated that BYD has provided Tesla with the best price, which is close to the cost line.

Data from third-party analysis agency InfoLink show that CATL and FinDreams Battery ranked first and second in the global energy storage cell market last year, with CATL's market share exceeding 35% and FinDreams Battery's share being 13%.

It's worth noting that Tesla's new partner, FinDreams Battery, whose parent company BYD, is also creating sources of income outside the automobile business through energy trading. Energy storage is currently BYD's fastest-growing business. And official information from FinDreams Battery shows that the sales volume of storage batteries increased by more than 136% year-on-year last year.