Panasonic plans new massive battery plant in U.S. to supply Tesla - NHK


Tesla electric vehicles for test driving are parked in Hanam, South Korea, July 6, 2020. Picture taken on July 6, 2020. REUTERS/Kim Hong-Ji

TOKYO (Reuters) - Japan's Panasonic Corp is looking to purchase land in the United States for a mega-factory to make a new type of electric vehicle (EV) battery for Tesla Inc, public broadcaster NHK reported on Friday.

Panasonic is looking at building the factory, to cost several billion dollars, in either Oklahoma or Kansas close to Texas, where Tesla is preparing a new EV plant, NHK reported. NHK gave no timeline for Panasonic's U.S. project.

NHK did not cite the source of its information. Panasonic said the reported plan was not something it announced.

A long-time supplier for Tesla, Panasonic has said it plans to begin mass-producing the new type of lithium-ion battery for Tesla before the end of March 2024 with two new production lines at its western Japanese plant in Wakayama.

The 4680 format (46 millimetres wide and 80 millimetres tall) battery is about five times bigger than those currently supplied to Tesla, meaning the U.S. car maker will be able to lower production costs and improve vehicle range.

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.

Since then, Tesla has ramped up production and diversified its supply chain to other firms, including Chinese manufacturers of cheaper lithium iron phosphate (LFP) powerpacks such as Contemporary Amperex Technology Co (CATL).

South Korea LG Energy Solution Ltd also plans to make 4680 batteries, sources told Reuters last year.

Shares of Panasonic were down 3% in morning trade in Tokyo compared with a 2.5% decline for the broader Nikkei 225 index.

(Reporting by Chang-Ran Kim and Tim Kelly; Editing by Leslie Adler, Cynthia Osterman and Edwina Gibbs)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

Google asks London court to throw out lawsuit over medical records
Microsoft wins dismissal of gamers' suit over $69 billion Activision deal
Adobe, Nvidia AI imagery systems aim to resolve copyright questions
Google begins opening access to its ChatGPT competitor Bard
Analysis-Social media-driven bank runs burden regulators with a bigger problem
Microsoft launches image-creation tool on Bing powered by OpenAI's tech
Adobe releases tools for generating product images from 3D models
BlackBerry signs up to $900 million patent deal after sale to Catapult collapses
TikTok CEO says company at 'pivotal' moment as some U.S. lawmakers seek ban
Italy's Antitrust probes TikTok over 'French scar' dangerous content

Others Also Read