In a recent report, Japanese technology giant Panasonic is planning to build a large battery cell factory in the U.S. to supply Tesla, in an effort to help improve the battery efficiency of the latter’s electric vehicles.
Jointly, Panasonic and Tesla have already built a factory named Gigafactory in Nevada.
Although the factory has not expanded as envisioned by Panasonic and Tesla, it has played a key role in Tesla’s growth, and also positioned Panasonic as a vital battery supplier to the automobile sector.
It now appears that the two companies are planning to replicate the success of Gigafactory, albeit on a much larger scale. Panasonic is reported to be in the process of land purchase in the US to build what many observers claim to be a mega factory. This factory will be exclusively used to build battery cells for Tesla. Panasonic is said to be in preference of either Oklahoma or Kansas for the new mega factory.
The reason for the proposed location is said to be the proximity of the two locations to Tesla’s new EV factory in Texas. The mega factory will reportedly cost several billions of dollars to build. Panasonic recently confirmed reports that the company will use the factory to build the new 4680 battery from March 2024, while it is currently being produced in Japan. Till date, Panasonic has not provided a specific timeline for the construction of the factory.
Mega Factory in close proximity to Tesla plant in Texas
The proposed new factory being built from scratch is to support the rapidly expanding production of EV’s by Tesla in the US. Tesla has currently started production of it’s Model Y in Texas, in close proximity to the envisioned mega factory by Panasonic.
At present, Tesla utilizes 4680 batteries manufactured at a pilot production facility in California, and deploys its own production capacity at the Gigafactory in Texas. In a statement, Tesla has announced that for the foreseeable future, it would purchase battery cells from any supplier it could identify.
Reports foresee that Tesla will have an additional demand for battery cells, after commencing production of the Cybertruck and Tesla Semi, vehicles that will more than likely require additional battery cells per unit.
In an official announcement, Tesla reported that it has already produced 1 million units of the 4680 battery, which may be used in the new Model Y under production at the new Texas factory. It is expected that the new 4680 battery will increase vehicle battery life by twenty percent. Tesla can only produce this battery by itself in the short term, necessitating the new alliance with Panasonic.
About Tesla
Tesla’s mission is to accelerate the world’s seamless transition to sustainable energy.
Tesla was founded in 2003,on the premise that people didn’t need to compromise to drive electric vehicles, quite the opposite – that electric vehicles can be quicker, more fun to drive, and better than traditionally built cars. Today, in addition to electric vehicles, Tesla builds scalable clean energy generation and storage products. Tesla believes that the world will be a better place the sooner it stops using fossil fuels.
About Panasonic
The Panasonic Energy Company produces dry-cell batteries that support daily convenience and comfort, industrial batteries and automotive batteries that support a wide area of social infrastructure.
Over the last century, Panasonic has focused on building a better world through electricity, providing solutions with batteries to lifestyle challenges.
