Panasonic Corp announced on Monday that it will begin mass production of a new lithium-ion battery for Tesla Inc at a factory in Japan by the end of March 2024.
The 4680 format battery (46 millimetres wide and 80 millimetres tall) was unveiled by the Japanese company in October and is five times larger than those currently provided to Tesla, allowing the EV maker to reduce production costs. The new powerpack is also expected to increase vehicle range, which could help Tesla entice more drivers to switch to electric cars.
Panasonic planning to build the batteries on two new production lines at its Wakayama factory in western Japan, according to a press release. The amount of money spent on the expansion has not been revealed by the corporation. Panasonic intended to invest 80 billion yen ($692 million) on the factory, according to the Nikkei newspaper. According to reports, manufacturing will most likely begin in late March 2024, rather than 2022.