According to a source familiar with the deal, Tesla Inc has agreed to acquire Germany’s ATW Automation, a supplier assembling battery modules and packs for the auto industry, for an undisclosed sum.
ATW, a subsidiary of Canadian ATS Automation Tooling Systems Inc, was on the brink of liquidation following a slump in orders.
On September 25, ATS had stated that employees at one of its Germany-based business along with assets, would be transferred to a third party; the assets would be sold to the third party. ATS had not disclosed the name of the company.
Neither ATS nor ATW immediately responded to requests for comments.
ATW has nearly 120 employees in Germany and has completed more than 20 battery production lines for international automakers, said ATS on its website.
The acquisition comes in the wake of news reports stating Tesla plans on significantly ramping up battery production in the coming years.
Currently, Tesla is building its third vehicle manufacturing facility near Berlin, which will include a battery plant.
The electric vehicle’s future lineup, including its Cybertruck and the Semi truck will require higher battery capacities.
On Friday, Tesla had said, during the third quarter, it had delivered a record 139,300 vehicles globally and aims to deliver half a million vehicles by the end of 2020.