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Tesla Sues EV-Battery Supplier For Alleged Trade Secret Misuse

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Tesla has sued Matthews International, a supplier of electric vehicle batteries, for allegedly disclosing its confidential trade secrets to other companies, including competitors.

The lawsuit, filed in the Northern District of California, claims Matthews breached its contract,

It alleges the company improperly filed patent applications using Tesla’s trade secrets without consent.

Matthews denies the allegations, saying the claims are baseless.

It said the lawsuit is an attempt to bully the company and "improperly take" its intellectual property.

Tesla argues the company will suffer immediate and irreparable harm unless Matthews is stopped, with potential monetary damages exceeding $1 billion.

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In 2019, Tesla chose Matthews as a supplier for equipment to refine and mass-produce its dry-electrode-battery manufacturing process. 

Tesla alleges it has been working to block or delay the publication of the affected applications since discovering Matthews's misconduct.

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According to the lawsuit, only a subset of Tesla’s confidential information regarding dry-electrode manufacturing has been published.

Matthews refutes Tesla’s claims, stating that the complaint attempts to restrict the company from realizing the value of its intellectual property. 

Despite the lawsuit, Matthews asserts it continues working with Tesla as a trusted supplier.

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