Tesla sues ex-supplier Matthews over EV battery trade secrets (updated)

Matthews International

17/06/2024 19:37

(Adds comment from Matthews in paragraph 3)
    By Blake Brittain
       June 17 (Reuters) - Tesla  TSLA.O  has sued its former
supplier Matthews International  MATW.O  in California federal
court for allegedly stealing trade secrets related to Tesla's
battery-manufacturing process and sharing them with the
electric-vehicle giant's competitors.
    The lawsuit, filed on Friday in U.S. District Court for the
Northern District of California, said Matthews owes damages that
Tesla "conservatively estimates will exceed $1 billion" for
misusing company trade secrets related to dry electrode battery
manufacturing technology.
    Matthews in a statement on Monday said Tesla's lawsuit is
"simply a new tactic in their ongoing efforts to bully Matthews
and improperly take Matthews' valuable intellectual property,"
and that it would "vigorously defend the matter."
    Attorneys and spokespeople for Tesla did not immediately
respond to requests for comment on Monday.
    Pittsburgh-based Matthews began supplying Tesla with
manufacturing machinery in 2019, according to the complaint.
Tesla said it shared secrets with Matthews related to
dry-electrode coating, which the carmaker has said can
dramatically reduce the size, cost, energy consumption and
production cycle time of battery manufacturing plants while
boosting the energy density and power of battery cells.
    The lawsuit said Matthews shared Tesla's innovations with
unnamed competitors by selling "machines and other technologies
embodying Tesla's trade secrets." It also said Matthews claimed
Tesla's inventions as its own in patent filings that have
revealed confidential Tesla information.
    Tesla asked the court to block Matthews from misusing its
trade secrets and hand over its patent applications in addition
to requesting monetary damages.

 (Reporting by Blake Brittain in Washington
Editing by David Bario and Nick Zieminski)
 ((blake.brittain@tr.com; +1 (202) 938-5713;))