Tesla Motors is ending its arrangement to provide batteries for Toyota’s electric vehicles.

According to a report published by Bloomberg, Tesla Motors has recently been supplying battery packs for electric versions of Toyota’s popular compact crossover vehicle, the RAV4. Toyota and Tesla (the former of which owns 2.4 percent of the latter) entered into a $100 million agreement in 2012, stipulating that Tesla would provide battery packs for approximately 2,600 electric RAV4 EV vehicles over the course of three years.

Now, however, Tesla has stated that it expects Toyota to terminate the deal early and stop production on the RAV4 EV. The electric version of Toyota’s crossover has not managed the same popularity of its gasoline fueled counterpart, likely due to the higher cost and the relative lack of battery charging stations throughout the United States. The car has been most popular in California, where law dictates that every car company has to offer “pollution-free” vehicle options. California is also where Tesla is based and has the country’s highest concentration of electric car drivers and charging stations.

If Toyota does opt to end production of the RAV4 EV – the company has not confirmed or denied Tesla’s claim yet – then the company will likely seek to replace it with another electric car option to appease California legislators. Current speculation says that Toyota will introduce a hydrogen fuel cell vehicle to the California market in 2015.

Meanwhile, the end of the RAV4 EV agreement might be the best thing for Tesla, as the company prepares to unveil its own battery-powered compact crossover. The car will reportedly be called the “Model X,” and will likely seek to serve many of the same buyers who purchased the RAV4 EV (though, considering Tesla’s history, the price point will probably be considerably higher). Tesla is also expected to announce a lower-priced, more consumer-minded sedan in 2015.