By Greg Gao

(JW Insights) Sep 5 -- Tesla Gigafactory Shanghai established a robust supply chain that has already reached a localization rate above 95%, Tesla China President Wang Hao said in an interview with Xinhua recently. 

“Tesla has about 360 local Tier 1 suppliers under contract in China, and we have brought approximately 60 of these companies into the international market. They have also gained recognition from other international automakers,” Wang Hao added.

“Chinese companies in the supply chain are growing together with Tesla because there is a lot of fundamental research and development involved in electric vehicles. From concept to assembly, Tesla is working with these companies,” Wang Hao said. “These companies, in turn, will provide services to many more Chinese electric vehicle manufacturers. It’s a mutually beneficial environment. We look forward to collaborating with the Chinese electric vehicle industry.”

The Chinese electric vehicle market is huge and has excellent growth potential. Traditional automakers looking to establish a foothold in the Chinese EV market need local cooperation and support, Wang noted. 

Nearly 40% of Tesla’s electric vehicle battery material suppliers are Chinese companies, highlighting China’s domination in this strategically important field, according to a Nikkei Asia report.

Chinese companies recognized as essential suppliers to Tesla include major lithium product manufacturer Ganfeng Lithium, leading inorganic compound producer Jiangsu Novoray New Materials, and cobalt material producer Zhejiang Huayou Cobalt, among others.