Tesla (TSLA) has sued Matthews International (MATW) for allegedly stealing confidential trade secrets related to the EV maker's dry-electrode battery manufacturing technology and disclosing them to Tesla 's competitors.

According to the lawsuit filed Friday with the US District Court for the Northern District of California, Tesla said it shared confidential designs of industrial machinery needed for the manufacturing process after Matthews signed a nondisclosure agreement. "However, Matthews betrayed that trust," Tesla said in the suit.

Tesla "conservatively estimates" monetary damages to exceed $1 billion, according to the lawsuit.

The company alleged Matthews attempted to claim both ownership and inventorship of its trade secrets by filing for their patents without its knowledge or permission, resulting in the publication of confidential information regarding the dry-electrode manufacturing process, the lawsuit said.

Tesla also alleged Matthews tried to sell competitors equipment for dry-electrode battery manufacturing that "embodied Tesla's confidential trade secrets."

Matthews did not immediately respond to a request for comment from MT Newswires.