Tesla filed a lawsuit against former supplier Matthews International on March 10, 2026, in the U.S. District Court for the Northern District of California. The electric vehicle manufacturer seeks damages exceeding $1 billion for the alleged theft of trade secrets.
The legal filing accuses Matthews of misappropriating confidential information regarding Tesla’s dry electrode battery manufacturing process. Tesla claims the supplier shared this proprietary technology with competitors. The lawsuit further alleges that Matthews attempted to claim these inventions as its own in various patent filings.
Tesla describes the dry electrode process as a significant breakthrough for the industry. This technology reportedly reduces the physical size and cost of battery production facilities. The innovation also improves overall vehicle range. This legal action highlights the intensifying competition as manufacturers race to develop more efficient production methods.