Panasonic is Reportedly Charging Tesla

🔋 Panasonic will start mass producing next-gen lithium-ion batteries for Tesla as early as 2023, according to a report from Nikkei Asia. The company plans to invest $700 million in production facilities in Japan, with an expected output equivalent to ~150,000 vehicles each year.

• Panasonic’s new battery will reportedly have 5x the capacity of existing models and is 10% to 20% cheaper to produce. If true, it could lead to cheaper EV prices overall since batteries today make up ~30% of the vehicle’s cost.
• Tesla’s flagship Model S currently has a range of about 400 miles on a single charge. With Panasonic’s new 4680 battery (☝️ on the left), that number would reportedly improve by more than 15% to 465+ miles.
• In a statement to Reuters, Panasonic declined to confirm the report: “We are studying various options for mass production, including a test production line we are establishing this business year. We don’t, however, have anything to announce at this time.”

+On the horizon: The status of Tesla’s new batteries will likely be mentioned when the company reports its Q4 and full-year 2021 earnings tomorrow.