Panasonic is going to produce next-generation battery cells for Tesla. Which is possibly expected to be 4680 battery cells. It was reported by Nikkei Asia that Pansonic will be making next-generation battery cells, but hasn’t specified about 4680 battery cells.
Elon Musk talked about batteries shortages back in 2020 itself. Stated that they intend to purchase more batteries from Panasonic, LG, and CATL. It is interesting how by 2021 there were supply chain issues, which include a shortage of battery component supply.
We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we also take action ourselves.
— Elon Musk (@elonmusk) September 21, 2020
Although the batteries are being manufactured primarily for Tesla, a Panasonic executive didn’t rule out supplying them to other companies in a November interview. The new batteries promise to boost the range of electric cars and make them more affordable to produce and sell. Furthermore, in a statement given to Reuters by Panasonic, Nikkei’s statement was denied. The company said, “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.”
If Panasonic were to manufacture the 4680 battery cells, it would increase the range by 20% than the current Tesla batteries. Which would mean the Tesla Model S Plaid range would increase to 750 km (465 miles). Panasonic is reportedly expanding its Wakayama, Japan plant to mass-produce the new batteries, and previously known that test production is due to start in March 2022.
Next-generation batteries
The next-generation battery cells were detailed by Tesla at a high-profile event in September 2020. As well as their higher storage capacity, the company’s CEO Elon Musk said the cells are six times more powerful and reduce cost per kWh by 14 percent (batteries are estimated to make up 30 percent of the cost of an electric vehicle). Lower prices and improved range are the sorts of improvements that are key to making electric cars more desirable.
During more recent earnings calls, Musk has reiterated that he expects Tesla’s in-house production of the 4680 cells to start in 2022 and that the first vehicles equipped with these cells will ship the same year. In an April 2021 earnings call, Musk indicated the company was 12 to 18 months away from mass production of the new cells. However, in July he cautioned that “prototype production is easy, but high-volume production is hard,”
Furthermore, more details are expected to be revealed by Elon Musk in the upcoming earnings call on 26th January 2022. There are various questions by investors which are yet to be answered. Regarding the Cybertruck production and the 4680 battery cells production.
