BEIJING, May 14 (TMTPOST)— In order to secure more low-cost batteries, Tesla is in advanced talks with EVE Energy Co to add the Chinese lithium battery manufacturer to its supply chain of the Shanghai Gigafactory, and aims to reach a deal in the third quarter, Reuters cited people with knowledge of the matter on Friday. It is also said EVE Engery is close to end testing batteries for Tesla’s electric vehicles. Neither EVE nor Tesla responded the report. If these two companies build partnership, EVE would be Tesla’s second supplier for the lithium iron phosphate (LFP) batteries followed CATL, the world’s largest battery maker and EVE’s domestic rival. Tesla started producing Model 3 in Shanghai with LFP batteries in last October and CEO Musk said in February that the company is shifting standard-range cars to this type of cheaper and cobalt-free batteries over nickel supply concerns.