Tesla CEO Elon Musk image : Nvidia

According to a Bloomberg piece, Tesla is in talks with China’s Contemporary Amperex Technology Limited (CATL) for rechargeable batteries that’ll power Model 3 vehicles, the ones it plans to begin assembling at its new – under construction – factory in China. The report says CATL has been discussing the required specifications for the rechargeable batteries with Tesla personnel, although it notes there’s no guarantee that an agreement will be reached.

A deal like this would be a win-win for both sides, as securing a steady supply of batteries is key to Tesla’s financial success as it gets ready to launch its first factory outside the U.S. Likewise, securing a famed customer like Tesla would boost CATL’s reputation as one of the world’s emerging battery-making top companies.

image: CATL / BMW

Founded in 2011, CATL is much younger compared to older competitors like Panasonic, BYD and LG Chemical. The company inked a noteworthy $4.7 billion deal with BMW July last year, just after going public the month before. It’s market cap stands at nearly $30 billion – as of writing – on the Shenzhen Stock Exchange.

The company is the largest battery maker for buses in China and may be on track to become the world’s largest producer of electric vehicle batteries.

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