Late yesterday, the Korea Economic Ilbo reported that Tesla has called off its battery cooperation with BYD. In response to foreign media reports that "Tesla has suspended its cooperation with BYD on batteries", BYD said in its latest response to Cailian.com that it is "untrue information and inconsistent with the actual situation".

The news comes after BYD started supplying 10GWh batteries to Tesla's European models last year, and even Tesla models with blade batteries have entered the C-type testing phase.

According to IT Home, Lian Yubo, executive vice president of BYD Group and director of the Automotive Engineering Research Institute, also said in an interview last year: "BYD respects Tesla and is good friends with Musk, and is ready to supply batteries to Tesla right away."

The Korea Economic Daily said Tesla has not asked BYD to continue supplying batteries for low-priced models such as the Model 3 standard edition after the contract expired earlier this year. There are three possible reasons why cooperation has stopped:

• 1. Continuous problem of BYD blade battery.

• 2. Considering the subsidy policy related to electric vehicles in the United States.

• 3. Byd manufactures and exports electric vehicles in Europe, India, Southeast Asia and other places in direct competition with Tesla, which is also the reason for the termination of the contract.

According to the article, LG Energy Solutions is accelerating the development of lithium iron phosphate batteries for electric vehicles at Tesla's request, as demand will be greater for Tesla's upcoming cheaper models.