Panasonic is ramping up its electric vehicle battery production, committing to an increased order from automakers Tesla.
The Japanese company announced it will boost production, by 10 per cent, of the 2170 cylindrical cell batteries it supplies to Tesla for use in its flagship Model 3.
Panasonic recently announced its plans to build the world’s largest electric vehicle battery plant, a A$5.9 billion behemoth to be constructed in Kansas. It will dwarf the Gigafactory that Panasonic currently runs with Tesla in Nevada.
Tesla opened a new EV factory in Texas in April, and plans to have increased production 20-fold by 2030.
Panasonic is also working on a high-capacity battery for Tesla, which will cut unit costs, while increasing energy capacity fivefold, and driving range by more than 15 per cent.
The plan is to have this battery in production by early 2024.
“With the increased electrification of the automotive market, expanding battery production in the U.S. is critical to help meet demand,” Kazuo Tadanobu, president and CEO of Panasonic Energy said of this investment.
Panasonic wants US production “to reach the level of our domestic factories”, flying workers from its Osaka factory, which already provides EV batteries to Tesla, to the US to provide technical assistance and training.
