Samsung SDI is moving forward in talks with Tesla Motors to supply batteries for the U.S. automaker’s Model 3 electric car in addition to its energy storage products, a source with direct knowledge of the matter revealed.

Shares in the Samsung SDI rushed to trade 6 percent higher in early afternoon trade, knocking the wider market’s 1.1 percent gain.

Tesla, which at the moment buys its batteries from Japan’s Panasonic Corp, is likely to add Samsung SDI as a supplier incase sales exceed what they are looking out for, the source said, however he refused to state what level of sales would confirm a deal for the South Korean company.

Tesla has taken 373,000 orders for its Model 3 – which has a starting price of $35,000, about half its Model S – and has said it would begin customer deliveries in late 2017.

“It remains to be seen whether the orders will translate into actual sales,” the source said, noting that the latter declined to be identified as the discussions were confidential.