Panasonic Tesla Battery: Higher Capacity Production in 2023?

Panasonic to Potentially Begin Mass Production of Advanced Batteries for Tesla

As early as the coming year, Panasonic may initiate the large-scale manufacturing of higher-capacity batteries specifically designed for Tesla vehicles. The new 4680 cell is projected to extend the driving range of electric vehicles by more than 15 percent.

Increased Range and Efficiency

According to reports from Nikkei, this advancement could increase the Model S’s range from approximately 650 kilometers (404 miles) to 750 kilometers (around 465 miles) on a single charge.

Despite being double the size of prior iterations, the battery boasts a fivefold increase in energy density. Consequently, fewer batteries are required per vehicle, and production costs are already decreasing by 10 to 20 percent.

Considering batteries currently represent around 30 percent of an EV’s total cost, a reduction in these expenses could significantly improve the affordability of electric vehicles and accelerate their widespread adoption. Furthermore, an extended range would lessen the frequency of necessary charging stops for drivers.

Investment and Production Plans

Panasonic, a longstanding collaborator with Tesla, is reportedly allocating approximately 80 billion yen (equivalent to $704 million) towards new equipment for 4680 cell production.

The initial phase involves expanding an existing facility in Japan, where battery production will commence. Nikkei indicates that the company will begin small-scale cell production this year to refine safe and effective manufacturing processes.

Mass production is anticipated to begin in 2023, with potential expansion to other countries at a later date.

Confirmation and Future Outlook

Panasonic has confirmed to Reuters the establishment of a test production line for 2022, but has not specified a timeline for larger-scale manufacturing. The company stated, “We are studying various options for mass production.”

The development of this cell originated from a direct request by Tesla. The leader of Panasonic’s battery division indicated in November that while Tesla remains the primary focus, the company has not dismissed the possibility of supplying the cell to other automotive manufacturers.

Tesla's Battery Strategy

Elon Musk, CEO of Tesla, has previously stated that while his company intends to manufacture its own batteries, it will continue to procure them from external suppliers.

Tesla first unveiled the 4680 cell during its Battery Day event in September 2020. At that time, Musk suggested that this cell and related innovations could pave the way for Tesla to offer an electric vehicle priced at $25,000.

Important Note: This report was originally published on Engadget.