Panasonic to start producing new Tesla batteries in 2023 (2024)

FAQs

Is Panasonic making batteries for Tesla? ›

Panasonic to soon make new batteries for Tesla, could 'reduce' EV prices: report. Panasonic said it will produce a new and improved version of the 2170 cells used in Tesla Model 3 and Model Y at the plant in Nevada that it operates with Tesla “sometime during 2024 or 2025,” according to a new report in Bloomberg.

What company makes Tesla's batteries? Tesla is currently working with Japanese company Panasonic, its longtime partner, as well as South Korea's LG Energy Solutions, the second largest battery supplier in the world. They supply the EV maker with cells containing nickel and cobalt.

Panasonic is also developing another battery that's thicker and more voluminous, called the 4680 cell. Raising manufacturing capacity 10% by the 2025 fiscal year doesn't necessarily require the addition of new production lines or further investment, according to Watanabe.

Customers can choose between a Tesla Service Center or a third-party battery replacement supplier. The battery replacement cost varies depending on the model year and size. Estimates suggest that the batteries for the Model S cost between $12,000 and $15,000.

Panasonic, which has a plant in Nevada, is currently building a new factory of 2170-type cells for EVs in De Soto, Kansas, its second in North America. The plant is a $4 billion project with an initial output of 30 GWh/year.

This supply agreement helps ensure Tesla will meet its cost and margin targets for Model S. This agreement builds upon a multi-year collaboration between Panasonic and Tesla to develop next-generation automotive-grade battery cells and accelerate the market expansion of electric vehicles.

NAGOYA, Japan -- An electric vehicle battery venture owned by Toyota Motor and Panasonic Holdings has struck a deal to access lithium from a U.S. mine held by Australian company ioneer, the commodities supplier said Monday. Ioneer plans to start production of lithium from the Rhyolite Ridge project in Nevada in 2025.

Panasonic, which now supplies nearly all of its EV batteries to Tesla, is looking to capture more global market share as it faces growing Chinese and South Korean competition.

Panasonic buys cobalt from Sherritt and the metal is then turned into specialised cobalt chemicals by a contractor, according to the sources. Panasonic is also supplied with cobalt chemicals by Sumitomo Metal Mining Co Ltd, which produces most of its material in the Philippines, the sources said.

Construction continues at Panasonic's new $4 billion, lithium-ion battery manufacturing plant on Tuesday, Jan. 2, 2023, near De Soto, Kansas in Johnson County.

Who does Panasonic make EV batteries for? ›

Japan made its own move in 2022 to foster a domestic market by pledging to increase annual lithium-ion battery production capacity to 150 GWh by 2030. Panasonic is the country's top battery maker and a major supplier to Subaru Corp., Mazda Motor Corp. and Tesla.

According to Tesla CEO Elon Musk, Tesla car batteries are supposed to last around 300,000 to 500,000 miles or about 1,500 times of charging and discharging.

The Tesla Model 3 has the lightest battery pack at around 1,060 pounds (lbs), while the Tesla Model Y has the heaviest batteries at 1,700 lbs. Most EV batteries weigh roughly 1,000 lbs, and the heavier ones are almost 2,000 lbs.

NOTE: Tesla doesn't sell the Powerwall solar batteries individually. You have to purchase them as part of a larger Tesla home energy installation—either a solar roof or solar panels. Solar panels cost $16,000 on average.

OSAKA, Japan / PALO ALTO, Calif. -- Panasonic Corporation and Tesla Motors today announced that the two companies have reached an agreement in which Panasonic will expand its supply of automotive-grade lithium-ion battery cells to Tesla.

TOKYO, Feb 9 (Reuters) - Japan's Panasonic Energy, a supplier for Tesla's (TSLA. O) , opens new tab electric vehicles, said on Friday it has struck a graphite supply agreement for its U.S. battery plants with Australian materials company Novonix (NVX.AX) , opens new tab.

“Panasonic will supply lithium ion cells for EVs that can achieve longer range with large energy density. It is our pleasure to start supplying the cells for Tesla's Model S and promote sustainable mobility,” said Masato Ito, President, Energy Company of Panasonic Corporation.