Benzinga | Aug 11, 2021 09:07AM EDT

Warren Buffett-Backed BYD Dismisses Earlier Reports Of Supplying Blade Batteries To Tesla

Chinese auto manufacturer BYD Company Limited (OTC:BYDDF) has denied reports that it is preparing to supply "blade batteries" to Tesla Inc. (NASDAQ:TSLA), cnEVpost reported Tuesday.

What Happened: BYD, which has the backing of Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett, denied having told the media it would supply the batteries to Tesla next year or that the batteries would be used in the Tesla Model Y, as per the report,

See Also: Warren Buffett-Backed BYD Sold More EVs In July Than Nio, Xpeng, Li's Combined Deliveries

Why It Matters: BYD claims that the blade battery will not catch fire as it uses more thermally stable lithium iron phosphate cells. The battery was first used in BYD's flagship Han EV model launched in June 2020.

BYD's thriving battery business was seen as receiving a shot in the arm from the Tesla relationship.

However, the company is also involved in electric vehicle manufacturing and is thus, in competition with Tesla in China.

Price Action BYD Company OTC shares closed almost 0.3% higher in Tuesday's trading at $34.39, while Tesla shares closed 0.5% lower at $709.99.

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Photo: Courtesy of BYD