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FILE PHOTO: Panasonic is no longer Tesla's exclusive battery supplier. (REUTERS)
FILE PHOTO: Panasonic is no longer Tesla's exclusive battery supplier. (REUTERS)

Tesla signs three-year pricing deal with battery cell maker Panasonic

  • The deal between Tesla and Panasonic, signed last week and effective April 1, 2020, sets the terms for production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the agreement.

Tesla Inc has signed a three-year pricing deal with Japan's Panasonic Corp relating to the manufacture and supply of lithium-ion battery cells at the Gigafactory in Nevada, the electric carmaker disclosed in a filing on Tuesday.

Tesla and Panasonic have been reported to be in talks to expand the battery joint venture's capacity.

Panasonic hinted in May that it was working to develop new batteries with Tesla, possibly with higher capacity.

(Also read: How Tesla Model S became first-ever EV to have range of over 644 kilometres)

Tesla said the deal, signed last week and effective April 1, 2020, sets the terms for production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the agreement.

Tesla also amended the general terms and conditions of its partnership with Panasonic, modifying the term to expire 10 years after Panasonic achieves certain manufacturing milestones.

(Also read: Tesla strikes deal to buy cobalt from Glencore for EV plants: Source)

Panasonic is no longer Tesla's exclusive battery supplier, but has been able to turn around the US.joint battery business as demand for Tesla's electric cars soar.

Last month, Tesla reported its third consecutive quarterly profit despite the economic impact of the coronavirus pandemic, taking investors by surprise.

This story has been published from a wire agency feed without modifications to the text.

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