Expensive batteries are one reason why electric cars cost more to buy.
That has Tesla thinking.
Reuters sources say it's in talks with Chinese firm EVE Energy.
It wants to procure cheaper cells from the company.
EVE makes batteries using lithium iron phosphate, or LFP.
They're cheaper than the usual type, which use more expensive nickel and cobalt.
There's a catch though, as the LFP cells don't offer as much range on a single charge.
Sources say the talks are advanced, and a deal could be struck in the third quarter.
EVE is reportedly already running late-stage tests for Tesla.
The electric car pioneer faces mounting cost pressures and new rivals including Chinese makers like Nio.
Earlier in the year founder Elon Musk said Tesla would shift some vehicles to alternative battery technology amid concerns over the supply of nickel.