Tesla Supplier Launches 1.2-Million-Mile Battery Designed To Last 16 Years

After being in-the-works for long and following several teasers, the wonder battery that boasts of both longevity and efficiency has finally been launched.

Delivering On The Promise: Tesla Inc's TSLA supplier Contemporary Amperex Technology Co. Ltd. announced Thursday the launch of a battery that can last for 16 years and about 1.2 million miles, China's National Business Daily reported, citing CATL.

CATL shares, which are listed on the Shenzhen stock exchange, closed 4.66% higher in reaction to the launch.

Over the weekend, CATL Chairman Zeng Yuqun reportedly hinted at an imminent launch.

China mandates that EV manufacturers offer warranties for not less than eight years or 120,000 kilometers. 

The Tesla Tie-Up: CATL announced in February it has signed a two-year supply agreement with Tesla that will run from July 2020 to June 2022. The volume of purchase was to be decided by Tesla chief Elon Musk depending on the EV pioneers' need, it was reported at the time. 

CATL, which is the market leader in EV batteries, also supplies other automakers such as Volkswagen AG VWAGY.

After reports suggested the relationship between CATL and Tesla with respect to the new battery is exclusive, the former denied them and said it is open to supplying to others as well, the NBD report said, citing Securities Times.

In mid May, a Reuters report suggested Tesla is working on a new battery for its Model 3 cars in China that confer the advantage of low cost and long life.

TSLA Price Action: Tesla shares were down 3.37% at $990.50 at the time of publication Thursday after closing Wednesday's session above the $1,000 barrier that gives on the company the status of the world's highest-valued automaker.

Related Links:

How China Became The World's Largest Electric Vehicle Market

Tesla's Journey To $1,000 In 2020

Photo courtesy of Tesla.