Connect with us

Hi, what are you looking for?

Panasonic 4680 Tesla Batteries
Panasonic 4680 Tesla batteries, compared to older style cells. Image courtesy of Panasonic.


Panasonic Will Invest $700 Million To Make Next-Generation Batteries For Tesla

Panasonic intends to expand a factory in Japan to produce 4680 battery cells for Tesla.

Nikkei Asia reports that Panasonic will invest $700 million to expand its battery factory in Wakayama prefecture, Japan, and bring in new equipment to manufacture the new 4680 battery cells developed by Tesla. When completed, the factory will be capable of producing about 10 gigawatt-hours per year of the new batteries, enough to power about 150,000 electric vehicles. That is about 20% of the company’s total battery manufacturing capacity from its factories in Japan, the US, and other countries.

The 4680 batteries cost 10% to 20% less to manufacture and have about a 15% higher energy density than the lithium-ion batteries that Tesla has been using to date. The extra energy density means a Tesla Model S would have a range of 750 kilometers, versus 650 kilometers today. Panasonic says the first batteries should be produced early next year.

Panasonic Fights To Win Back Market Share

Panasonic was Tesla’s go-to battery partner for a long time, but CATL and LG Energy Solutions have also started supplying batteries to Tesla, reducing Panasonic’s market share. The Japanese company expects to win back some of its business with Tesla by being the primary supplier of 4680 battery cells to Tesla.

“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,” Panasonic said in a statement to Reuters this week. Panasonic also expects to find other customers for the large format batteries in China and other global markets. Not only are the larger cells less costly to manufacture, they are also easier to fit to the chassis of an electric vehicle, which further lowers production costs.

The rest of the industry is not standing still. CATL, LG Energy Solutions, SK Innovation, and many other battery companies are plowing billions of dollars into new manufacturing facilities. It may be that one day someone will come up with a new battery technology that doubles energy density but costs half as much to manufacture. Until that day arrives, however, a 15% improvement in energy density at a 20% reduction in cost is remarkable news. It’s further proof that the EV revolution is happening right before out eyes.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new."


You May Also Like


Aline repeated this phrase “the good old days” many times as we enjoyed a coffee together in Brisbane, Queensland. I was intrigued by what...

Clean Transport

At the Tesla Semi unveiling in 2017, Elon Musk announced that the all-electric truck would have a range of up to 500 miles on...

Clean Transport

As the popularity of electric vehicles (EVs) continues to rise, Moab, Utah is quickly becoming an important destination for EV owners looking to take...

Clean Transport

One or more Tesla employees have supplied data from inside the company to Handelsblatt, much of it embarrassing to the company.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.