Panasonic to make Telsa batteries which may ‘reduce’ EV prices

Panasonic says 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”.

So says Bloomberg, citing Panasonic chief technology officer Shoichiro Watanabe.

The new cells, which pack much more energy density, could help reduce EV prices, the company states.

Watanabe says the Japan-based electronics maker aims to “quadruple production capacity by the 2030 fiscal year” and won’t need to build new factories or put huge investment in production plans.

“We will expand battery capacity and improve productivity at the same time,” Watanabe told Bloomberg.

Panasonic, with Tesla as its main US customer, produces some 10% of EV batteries globally.

The company intends starting a revised version of its 2170-type cylindrical battery cells, which Tesla uses in its Model 3 and Model Y cars and increase its battery production output by 10%.

Panasonic has been working to increase the energy density of the 2170 cell, with Watanabe saying the new improvements could help reduce the overall cost of an EV, Bloomberg reports.

A US$4 billion plant is being built for Panasonic for 2170-type cells for EVs in De Soto, Kansas, its second in North America. Initial output is expected to be 30GWh annually, says Electrek, adding a third US battery manufacturing plant should be announced soon with the company planning to reach 200GWh production capacity by 2030 – up from 50GWh.

In December, Panasonic announced an agreement to purchase nano-composite silicon anode material from Sila, a California-based company cofounded in 2011 by one of Tesla’s early employees. New EV batteries could allow more than 800km range and 10-minute recharges, reports suggest.

Meanwhile, a new Tesla Dual Motor Long Range Model Y is offered in New Zealand this year, starting at NZ$77,900 (excluding on-road costs) and reportedly using the older 2170-type battery providing 533km (WLTP) range instead of the prismatic lithium iron phosphate (LFP) battery used in Tesla’s Rear-Wheel Drive standard model which costs $67,900 before on-road costs and the Performance $89,900 – with the Clean Car Discount ended December 31.