Panasonic announces the start of Tesla 4680 battery cell production by March 2024

Panasonic today announced that it has flagged a new investment to begin production of Tesla’s 4680 battery cells by the end of the fiscal year ending March 2024.

The Japanese manufacturing giant is one of several battery makers looking to produce 4680 cells for Tesla.

Tesla is preparing to begin deliveries of its first vehicle using its 4680 battery cell, a new tab-less battery cell in a larger format with the new chemistry unveiled in 2020.

For the first time ever, the automaker plans to produce its own cells to support its electric vehicle production.

The Model Y manufactured in Gigafactory Texas is going to be the first vehicle to feature the new cell, which also enables Tesla’s structural battery pack architecture.

However, Tesla will need so many more cells that it is also partnering with existing battery suppliers to deploy its own production of the new 4680 cell.

Tesla’s oldest battery partner, Panasonic, has tentatively announced that it will deploy a prototype production line for the new battery cell.

Later, Panasonic’s new CEO, Yuki Kusumi, said it was ready to make a “big investment” in the production of Tesla’s new battery cells if trial production proves successful.

In October 2021, the Japanese manufacturer unveiled its own 4680 cell developed with Tesla.

A month ago, it was rumored that Panasonic had cleared a $700 million investment to produce 4680 cells in Japan.

Today, the company has confirmed the announcement without specifying the amount to be invested.

Panasonic wrote in a press release:

Panasonic Corporation today announced that its energy company will expand its business globally to a production facility at its Wakayama factory in western Japan to manufacture new, “4680” lithium-ion batteries for electric vehicles (EVs). will establish.”

The company confirmed previous reports that the “production facility” would include two new production lines:

“To contribute to the rapid adoption of EVs, Panasonic is working to increase its line-up of automotive lithium-ion batteries. Currently, Panasonic is launching a new high-capacity lithium-ion battery in several locations within Japan. battery, the “4680” is developing. The company will progressively develop production capabilities in preparation for full rollout. Along with structural improvements, two additional production lines as well as utility facilities will be established at the Wakayama factory, and productivity verification and large-scale But production is scheduled to start in the fiscal year ending March 2024.

Panasonic uses fiscal years ending in March and therefore, production could start anywhere between March 2023 and March 2024.

Tesla recently reported that it does not plan to be constrained by a limited supply of 4680 cells this year as chip shortages remain the main impediment.

However, the automaker said next year it expects Sail’s supply to be its biggest growth-limiting factor again.

Increasing our own production and securing supplies from other manufacturers, such as Panasonic, is going to be important.

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