Samsung SDI Co. may soon be named by Tesla Motors Inc. as an additional supplier of batteries in its goal to expand and introduce more models in its lineup. Confirmations came from both Tesla and Samsung SDI, a unit of Samsung Electronics Co., that talks are ongoing about the possibility of Samsung SDI being a supplier of battery technology to Tesla.
Samsung spokesman Kim Sang-eun won’t offer details and would only say that no decision has been arrived at. Tesla spokeswoman Liz Jarvis-Shean said that Tesla has been meeting with other battery suppliers too.
According to two insiders, the talks are now at their final stage and that they’re working out the issues left in the pending contract for Samsung SDI to provide battery technology for the Model X, a cheaper electric car model that’s expected to come out in late 2014.
A source said that the talks are "90% complete” and that Tesla and Samsung SDI were unable to finalize the deal primarily because of Samsung SDI's insistence that Tesla, as part of the agreement, buy other parts such as touch-screens from Samsung Group.
The financial details about the agreement have not been divulged yet. One source said that SDI management considers this move to be beneficial to its image and aids in its global operations.