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Tesla taps Samsung cells for huge Aussie energy-storage facility

Need for quick delivery behind snubbing of partner Panasonic

Tesla Energy batteries for businesses and utility companies at the Tesla Motors Powerwall Home Battery event in Hawthorne, California, on April 30, 2015.   © Reuters

PALO ALTO, U.S. -- Tesla's massive Australian energy-storage facility, which CEO Elon Musk vowed to build quickly after regional outages, will be equipped with battery cells from Samsung SDI instead of main supplier Panasonic

The decision to use Samsung SDI is a blow to Panasonic, which has its hands full with orders for electric-vehicle batteries. To meet a self-imposed deadline of 100 days, Tesla turned to the South Korean company since it could swiftly supply the cells. Tesla is importing the cells to the U.S. for final assembly before sending them to Australia -- apparently taking the promotional benefits over profit.

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