Tesla (TSLA) Said Looking to to Diversify Battery Suppliers

Tesla (Nasdaq: TSLA) may be looking to diversify its battery sourcing as the company prepares for a massive step-up in production over the next 12 to 18 months.

According to Korea Times, Tesla has approached companies like LG Chem, Samsung SDI, and SK Innovation about battery supplies. The company's current battery partner is Panasonic.

Sources aid that LG Chem is the likely front-runner due to its production commitment and pricing offer. LG previously supplied Tesla with batteries for its Roadster, though volume was small compared to what will be required moving forward.

On official in Korea said, Tesla intends to use more Korean technology on its Model 3. It decided to use tires manufactured by Hankook Tire and LG Display will possibly be supplying its OLED panels for the automotive systems. Additionally, Tesla is testing the manufacturing capability and production of LG Chem, Samsung SDI and SK Innovation.

Tesla recently made a commitment to deliver 400,000 vehicles in 2018.

Shares of Tesla ended the session down 1.7 percent.

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