Panasonic to invest $700 million to produce Tesla EV battery -Nikkei (2024)

FAQs

Is Panasonic going to make batteries for Tesla? ›

OSAKA -- Panasonic Holdings will boost production of the electric vehicle batteries it supplies to Tesla by about 10% by 2024. The Japanese company announced in July that it will also build its second EV battery plant in the U.S. in Kansas, but the factory is not expected to be operating until 2024 at the earliest.

Panasonic has been producing Tesla's 2170 cylindrical battery cells in Nevada since 2016. The facility now produces 37 gigawatt-hours of batteries a year (for context: one gigawatt can power about 9,000 Nissan Leafs).

The 2170 cell has been used in Tesla Model 3 and Model Y vehicles for years, and was an improvement from the 18650 cells used in flagship Model S and Model X vehicles.

Panasonic gave Tesla a shot, and it was arguably the best decision it ever made, as batteries became Panasonic's greatest growth contributor, thanks to Tesla's success. Growing that partnership, the Japanese manufacturing company built a massive battery factory with Tesla in Nevada.

To date, Elon Musk's electric vehicle company has mostly relied on Panasonic and other vendors including CATL in China, for battery cells that go into their cars' high-voltage battery packs, and into the company's energy storage systems for home, commercial and grid-scale installations.

The Chinese battery giant CATL has been deepening its collaborations with clients, including Tesla, in supplies for energy-storage batteries. CATL's chairman, Robin Zeng, expects energy-storage batteries to have a larger market than batteries powering electric vehicles.

China's Contemporary Amperex Technology Co. Ltd., known as CATL, unveiled its strongest battery to date Wednesday, saying that it could one day be used to power electric aircraft.

Contemporary Amperex Technology (CATL), based in east China's Fujian province, retained its position as the world's largest EV battery producer, according to Seoul-based SNE Research.

The 2022 report from South Korean firm SNE Research shows that EV battery manufacturer CATL once again holds its title as the largest in the world by installed battery capacity. That's now six years in a row that CATL leads the global EV battery market and based on 2022's numbers, is showing no signs of slowing down.

Panasonic Corporation Long-Term Monthly Chart

The current low is in response to challenging economic conditions like Covid-19 and present world supply chain breakdowns that have severely damaged stock valuations.

How much of Tesla does Panasonic own? ›

Panasonic bought 1.4 million Tesla shares at $21.15 each in 2010 for about $30 million. That stake was worth $730 million at the end of March 2020. The shares have gained almost seven fold since then and closed up 3.5% at $679.82 apiece on Thursday.

"Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla's growing needs as it expands its production of EVs."

Form Energy Inc., an energy-storage company backed by Bill Gates's Breakthrough Energy Ventures, is planning a $760 million factory in West Virginia, the latest plant announced in the aftermath of President Joe Biden's landmark climate law.

China's leading electric vehicle maker is BYD, which ranked second behind Tesla in 2022 in global BEV sales with 911,141 units, compared to the US company's 1,313,851. Get upfront price offers on local inventory.

Panasonic is the sole maker of the more advanced Tesla battery, ensuring it remains a key supplier to the U.S. company, at least for its pricier models, even as the EV maker seeks out battery suppliers in China and elsewhere.

Japanese conglomerates Toyota Motor Corp and Panasonic Corp have announced that their joint battery venture will buy lithium from the Rhyolite Ridge mining project of ioneer Ltd.

Panasonic Corp., which jointly owns a battery factory with Tesla Inc., sold the entirety of its stake in the electric vehicle maker for around 400 billion yen ($3.6 billion).

Panasonic said its existing U.S. assembly lines have already supplied more than 6 billion EV battery cells–most of which are likely powering Teslas.

Lithium mining is, like all mining, environmentally and socially harmful. More than half the current lithium production, which is very water intensive, takes place in regions blighted by water shortages that are likely to get worse due to global heating.

Bolivia. Bolivia has the highest identified lithium resources in the world with 20 million tonnes, as per the US Geological Survey data.

Who are the 3 car battery manufacturers? ›

Most aftermarket car batteries sold in the U.S. are made by three companies that build them for retailers: Johnson Controls, which supplies more than half of the market; Stryten; and East Penn.

Ford announced on Monday that it will build a new $3.5 billion EV battery factory in Michigan dedicated exclusively to manufacturing LFP batteries. “This plant — called BlueOval Battery Park Michigan — initially will employ 2,500 people when production of LFP batteries begins in 2026,” Ford said in a statement.

In late 2021, QuantumScape illustrated that its forever battery performed in 4-layer formats up to 800 charging cycles. A quarter later, the company scaled successful results to 10-layer batteries up to 800 cycles.

Redwood's founder, JB Straubel, was a co-founder and CTO at Tesla, where he was known as Elon Musk's right-hand man. Considered an engineering genius, Straubel developed Tesla's charging network and its first battery plant.

Still, a 62% share of the EV market makes Tesla “the market.” Chevy Bolt sales in Q1 were strong, placing the bowtie brand a distant No. 2 in EV sales; Ford was third. And interestingly, despite solid, popular products from both Hyundai and Kia, EV sales from the brands decreased last quarter.

FREYR Battery (FREY) Stock Price, News, Quote & History - Yahoo Finance.

The second biggest supplier of EV batteries is LG Energy Solution (formerly called LG Chem), which had a much lower but still significant 14% of the global EV battery market.

Nowadays, Panasonic focuses on its power plants, making it unquestionably one of the best battery stocks to buy.

Is Panasonic good to invest in? ›

PCRFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.06, while its industry has an average P/E of 15. Over the past year, PCRFY's Forward P/E has been as high as 12.84 and as low as 9.25, with a median of 10.81.

Stock Price Forecast

The 13 analysts offering 12-month price forecasts for Panasonic Holdings Corp have a median target of 11.13, with a high estimate of 15.15 and a low estimate of 7.58. The median estimate represents a +13.04% increase from the last price of 9.85.

Panasonic's relationship with Tesla stretches back more than a decade when Tesla signed an agreement that made the Japanese company its key battery supplier.

The Gigafactory will be managed by Tesla with Panasonic joining as the principal partner responsible for lithium-ion battery cells and occupying approximately half of the planned manufacturing space; key suppliers combined with Tesla's module and pack assembly will comprise the other half of this fully integrated ...

3.1, the next generation of Tesla's FSD computer will be using chips manufactured by Taiwan Semiconductor Manufacturing Company Limited (TSMC).

1. Aqueous Magnesium Batteries. If it were not for a few key issues, magnesium metal would be an ideal candidate to replace lithium 一 it is the eighth most common element, non-toxic, has a negative electrochemical potential, and has a high capacity thanks to its additional valence electron.

CATL, the world's biggest maker of EV batteries, plans to start mass production of the new cell, which will mainly be used initially for cars, this year, and critically at a lower energy density than the 500 Wh/kg it claims it can reach for aircraft.

The facility will produce large batteries that will help electric utilities stabilize grids and use more renewable energy. As a subscriber, you have 10 gift articles to give each month.

Tesla (TSLA)

Tesla (NASDAQ:TSLA) is the leader of EV stocks and there's no other way to say it. It's the dominant leader in the space and it's the best-performing EV stock of the bunch.

In battery technology parlance, solid-state batteries (SSBs) are sometimes called “forever batteries.” That's because these batteries promise to far outlast traditionally technologies that rely on the electrochemical discharge of ionic solutions.

What is the downside of owning a Tesla? ›

Steep price – "The initial investment for a Tesla can be steep," he notes. Prices for a base model start at about $40,000 and go up to well over $120,000. Charging can take time – A full charge can take 30-60 minutes at a Tesla Supercharger compared to about 5 minutes for a gas-powered vehicle.

Panasonic Will Power Future Teslas with Way Larger, Higher-Capacity Cylindrical Battery Cells. The Japanese battery maker revealed the 4680 battery that Tesla promises will allow for five times the storage capacity while being cheaper to build.

Panasonic is increasing production of its 2170 cylindrical cell batteries that power Tesla's flagship Model 3. The company will produce more cylindrical 2170 cell batteries that are used in Tesla's flagship Model 3 car and other models.

The company is currently working with Tesla to start production of its new 4680 battery cell format that is expected to come with some significant capacity improvements. Panasonic is expected to start production next year.

Tesla's Long-Time Partner Panasonic Building $4 Billion EV Battery Plant In Kansas. I follow transportation and climate-oriented technology developments.

EXCLUSIVE Tesla supplier Panasonic eyes 20% jump in battery density by 2030. July 13 (Reuters) - Panasonic Energy Co, a major Tesla supplier, is working on new technology to increase battery energy density by a fifth by 2030, the Japanese company's chief technology officer told Reuters.

OSAKA -- Panasonic will start mass production of new lithium-ion batteries that increase the range of electric vehicles over 15% as early as 2023, with the first deliveries heading for Tesla.

Together, Panasonic and Tesla have developed a next-generation battery cell technology that provides the highest energy density and best performance cells in the market. Panasonic's cylindrical cell is a customized technology designed specifically for optimizing electric vehicle quality and life.

In January 2023, Tesla amended its agreement with Piedmont Lithium (ASX:PLL,NASDAQ:PLL), which is now set to supply the US automaker with spodumene concentrate from the past-producing North American Lithium operation — a project Piedmont is developing with Sayona Mining (ASX:SYA,OTCQB:SYAXF).

Japanese conglomerates Toyota Motor Corp and Panasonic Corp have announced that their joint battery venture will buy lithium from the Rhyolite Ridge mining project of ioneer Ltd.

What things drain the Tesla battery the most? ›

Heat and Air Conditioning

Bumping up the heat for comfort while driving takes more energy from the battery. Similarly, blasting the air conditioner when it's hot outside cuts the battery range. Controlling the cabin and battery temperature is the biggest power drain second to driving the vehicle.

Since then, the Tesla-Panasonic partnership has come a long way. In 2009, Panasonic signed an agreement to supply lithium-ion battery cells to Tesla Motors for its electric vehicles. Later, the Japanese company decided to invest 30 million dollars in Tesla.

Across all Tesla products, the average charging cost per mile is 4.56 cents per mile. So, if you stick to home charging, you can expect your electricity bill to increase by about $50 each month. How long does it take to charge a Tesla?

Nearly 90% of Panasonic's batteries deployed in passenger xEVs went to Tesla in 2020.

CATL is the world's largest electric vehicle battery maker and supplier to the likes of Tesla and Ford.