Panasonic To Invest $700 Million To Produce Tesla EV Battery

Japan’s Panasonic will begin producing its new lithium-ion battery for Tesla from as early as 2023, with plans to invest about 80 billion yen ($705 million) in production facilities in Japan, the Nikkei reported on Monday. The powerpack could help make electric vehicles (EVs) more attractive to motorists by extending cruising range by about a fifth, the Nikkei reported, without saying where it obtained the information.

“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 sent to Reuters.

Panasonic unveiled the 4680 format (46 millimetres wide and 80 millimetres tall) battery in October. At around five times as big as batteries it currently supplies to Tesla, it is also expected to help the U.S. electric vehicle maker lower production costs.

Panasonic will make the 4680 batteries at a plant in Wakayama prefecture in Western Japan, with output of less than 10 gigawatt hours a year, equivalent to around 150,000 vehicles, the Nikkei said.

Panasonic is the sole maker of the more advanced Tesla battery, ensuring it remains a key supplier to the U.S. company, at least for its pricier models, even as the EV maker seeks out battery suppliers in China and elsewhere.

Research
Navigating the Retail Landscape in Southeast Asia: Key Challenges for 2025

Sign up for newsletters


Must read

Behind the Buzz
Retail News Asia — Your Daily Fix of What’s Happening in Asian Retail

We’re here to keep you in the loop—every single day. Whether you’re running a small local shop, scaling an online biz, or part of a global brand making moves in Asia, we’ve got something for you.

With 50+ fresh stories a week and 13.6 million readers, Retail News Asia isn’t just another news site—it’s the go-to source for all things retail across the region.
Retail Updates
Fresh updates. Real insights. Delivered daily or weekly—no spam, just retail gold.

Copyright © 2014 -2025 | Redwind