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First Ford, Now Tesla Signs Major EV Battery Deals With Chinese Suppliers

File image of the Tesla Fremont Factory in the United States. JOSH EDELSON / AFP

The United States government’s long-held goal to weaken China’s dominance in the strategically important electric vehicle battery sector suffered another setback on Monday when Tesla announced two multi-year deals to source batteries from two of China’s largest suppliers.

Tesla signed agreements with Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co. to provide a cocktail of battery materials that will be used to power its vehicles through the middle of the decade.

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