Exclusive-Tesla in talks with China's EVE for low-cost battery supply deal - sources Reuters | May 14, 2021 11:29 PM EDT Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China (Photo : REUTERS/Aly Song) Tesla Inc is in talks with Chinese battery maker EVE Energy Co to add the firm to its Shanghai factory supply chain, four people familiar with the matter said, as it seeks to boost procurement of lower cost batteries. EVE makes lithium iron phosphate (LFP) batteries, which are cheaper to produce because they use iron instead of more expensive nickel and cobalt. Advertisement