Panasonic will invest $700 million in the making of next-gen Tesla EV batteries
Japan’s Panasonic group’s battery department dealt with EV manufacturer Tesla. Panasonic will start producing new lithium-ion batteries suited for Tesla cars in 2023, even though Tesla Motors is the most prominent name in the EV market.
Tesla became initially popular due to the cost-effectiveness, fuel emission, dope tech and, of course, electric batteries that need charging. But the deal will give the company a spot in using one of the biggest names in battery manufacturing.
Panasonic planned to invest about 80 billion yen ($705 million) to develop production facilities in the country. With EV shares jumping up and up, the market gradually capitalises on its potential. Scarcity of fuel is seen some days; sudden price hikes also made people research EVs much more.
Nikkei, an Asian journal, reported the range of operation without directly mentioning its source. Major publications picked up the news early as it could help stockholders of Panasonic get a bump in percentage. New investors will play a critical role in filling the gap made by Panasonic with its investment routine. Even though Tesla’s collaboration, it will increase gradually.
People holding Tesla stocks for a long saw a thousand per cent increase in their portfolio, and many made millions of dollars riding the train. China is also trying to develop its EV stocks to compete. A statement sent to Reuters by Panasonic said they are ‘studying various options for mass production, including a test.’ The test will run a production line in the 2022 business year.
If we see through the critical overview, the finding says Tesla Motors partnering with Panasonic will create more attractive electric vehicles (EV). Nevertheless, motorists are already interested in the EV market as per stats, and it could cause a range of newer upcoming.
Panasonic in October announced its 4680 formats (46 millimetres wide and 80 millimetres tall) battery. The battery is power-packed to take your Tesla vehicle from point a to point b. the current state says it can run a reasonable distance without requiring any charging. But as it’s not as quick as hitting the gas and go, the passengers still fall behind in the sector.
The battery factory will be based in Wakayama prefecture, Japan. They are bringing new job opportunities and investment facilities. The 4680 batteries are currently on hold only for Tesla vehicles.
The factory can produce ten gigawatt-hours per year of new batteries. It will boost the EV’s production cost and time. Each yearly production from the new factory will power 150,000 new electric vehicles. Currently, it is 20 per cent of the manufacturing company from Japanese factories.
The new batteries even cost less. 10 per cent to 20 per cent less means saving millions and billions in the total credit. Currently, Tesla uses 15 per cent higher energy density cells than lithium-ion batteries. Once the new battery arrives, Tesla Model S will have a range of 750 kilometres, which is currently at 650 kilometres. By early 2023, Panasonic will send out the first batch of lithium-ion 4860 batteries to Tesla.
Even though Panasonic was Tesla’s primary battery manufacturer, LG and CATL followed the footstep. It lowered Panasonics revenue margin as their companies constantly supply the same battery to one company.
With the start of the 4860-battery supply, Panasonic is hoping to get back some of their revenue back as before because they are the only manufacturer of the 4860 lithium-ion EV battery.
The EV maker seeks out a few battery types; some of them even come from China. But Panasonic remains a premium option used in the pricier vehicle models. The rest of the industry, such as LG Energy Solutions, CATL, SK Innovation, are trying to stay along the curve with new manufacturing facilities.