Even as it has faced high demand for batteries from Tesla, Panasonic has been slower to build scale compared with rival suppliers LG Energy Solution of South Korea and China’s Contemporary Amperex Technology Co.

The automaker reported domestic China shipments of just 8,621 units in July, a 69 percent plunge from June.

The automaker hasn’t made a final decision, but is expected to partner with Panasonic at the operation.