Tesla has sued its former supplier Matthews International in a California federal court. Tesla alleges that Matthews has stolen trade secrets related to its battery manufacturing process and shared them with Tesla's competing companies.
Tesla filed the suit in the US District Court of Northern California on Friday. In this, Tesla says that Matthews should compensate the company. Which could be "more than $ 1 billion according to a rough estimate of Tesla". This compensation is for the misuse of trade secrets related to dry electrode battery manufacturing technology.
Matthews said in a statement on Monday that Tesla's lawsuit is "just a new tactic in their continued efforts to intimidate them and improperly acquire Matthews' intellectual property." The company also said that they would "vigorously defend this case."
Tesla lawyers and spokespeople did not immediately respond to requests for comment on Monday.
According to the complaint, Pittsburgh-based Matthews began supplying manufacturing machinery to Tesla in 2019. Tesla says it shared secrets related to dry-electrode coating with Matthews. Tesla claims that this technology can significantly reduce the size, cost, energy consumption and production cycle time of battery manufacturing plants. Also, it can increase the energy density and power of battery cells.
The lawsuit states that Matthews shared Tesla's innovations with unknown competitors by selling "machines and other technologies incorporating Tesla's trade secrets." Tesla also says that Matthews described Tesla's inventions as his own in patent filings. Which revealed confidential information about Tesla.
Tesla has demanded the court to prevent Matthews from misusing its trade secrets. And in addition to monetary compensation, his patent applications should be assigned.
(PC: ISTOCK)
