EVE Energy Malaysia Set To Supply Tesla with BESS

Speculation is brewing around Chinese owned EVE Energy Malaysia Sdn. Bhd. (EVE), a global lithium battery manufacturing giant, over a potential partnership with Tesla.

Reports suggest that EVE’s newly inaugurated manufacturing facility in Padang Meha, Kedah, may become a key supplier of Battery Energy Storage System (BESS) for the American EV giant.

Initially, EVE’s Padang Meha facility was announced by the Malaysian Investment Development Authority (MIDA) to be focused on producing lithium batteries for power tools and electric two-wheelers. These were also targeted for markets in Southeast Asia, Europe, and North America.

EVE Energy Malaysian Factory & Tesla Shanghai Gigafactory

The plant, expected to employ 2,000 Malaysians — primarily in technical roles — once it becomes fully operational in the first quarter (Q1) of 2025.

Rumors also indicate that the Kedah-based factory might begin supplying Tesla with batteries for its BESS by 2026. The Chinese media outlet LatePost reports that EVE and Tesla have signed an agreement for the latter to source cells from the Malaysian facility.

Although EVE has acknowledged concluding a contract with "a customer in America," it has not specifically mentioned Tesla. When LatePost asked EVE for clarity, the business did not confirm or deny the Tesla link, instead it implied that the deal will increase the company's visibility in the global energy storage industry.

It's also significant that the start dates of Tesla's Shanghai Megafactory and EVE's Padang Meha facility are the same. Megapacks are reportedly the main emphasis of Tesla Shanghai Megafactory's sales in China and other countries.