Tesla EV batteries to get a $700 million booster dose by this company

Panasonic will invest $700 million to produce Tesla EV batteries, claims a report by Nikkei. The battery manufacturer has tied up with Tesla for making the US electric car manufacturers future battery packs. Panasonic will commence producing batteries for Tesla from early 2023, reveals the report.

These Panasonic made electric vehicle batteries are claimed to come offering better range and efficient performance as compared to the current batteries. The report claims that these battery packs will help make electric vehicles more attractive to consumers by extending the cruising range by around a fifth.

The technology company unveiled its 4680 format battery for electric vehicles in October last year. These EV batteries are around five times as big as the batteries Panasonic currently supplies to Tesla. These new generation and improved technology enabled battery packs are also claimed to reduce production costs for the US auto major.

The report claims that this new generation of 4680 batteries for the Tesla cars will be manufactured at a plant in Wakayama prefecture of Western Japan. This plant will be capable of producing batteries for around 150,000 electric vehicles every year.

Panasonic is currently the only manufacturer of the more advanced Tesla battery. This makes the company a key supplier to the US auto company, at least for the pricier models. However, Tesla has been seeking tie-ups with battery suppliers in China and elsewhere as well.

Tesla is also aiming to make its own battery packs in an attempt to reduce the supply chain disruption in future. With this, Tesla aims to reduce dependence on other suppliers for its battery packs. The auto company has been working on a new plant and preparing to create its own supply chain as well.