Panasonic CEO Prepared To Make Large Investment For Tesla's 4680 Cells

In September 2020, Tesla unveiled its latest 4680 battery cells. Tesla calls these tab-less batteries which are smaller and have the potential to be cheaper and more efficient enabling longer range in its electric cars. Now, Panasonic's new CEO Yuki Kusumi has said that he will be happy to make a larger investment in these batteries provided that its current prototype production line is a success. Tesla had developed the manufacturing process so that it can make its cars even more efficient, cost-effective and for supply chain reasons as it was scaling its gigafactories in Berlin, Shanghai, and Texas. Panasonic of course is Tesla's oldest partner and has already announced that it would be deploying prototype production facilities about which Kusumi has talked about.

Panasonic's new CEO has hinted at making a big investment for Tesla's 4680 battery cells

"Panasonic is working to set up a prototype production line to test 4680 batteries - a next-generation lithium-ion cell touted as the key to unlocking cheaper and more ubiquitous EVs. If Panasonic looks to be capable of churning out better-performing cells more efficiently than rivals, it will make a "large investment" in their production," reported a Bloomberg report quoting Kusumi.

While Panasonic is helping with the prototypes, Tesla now also has LG and CATL two of the world's largest battery manufactures as its suppliers and they are also developing 4680 cells.

Chances are at the end of the pilot project is a success all three will be making batteries based on this new format, though Panasonic could be restricted to US facilities as it has operations embedded in the US gigafactory. CATL will likely make sense for the China facility while LG could end up being the supplier for the Berlin gigafactory.