Panasonic announces mass production of Tesla 4680 batteries in fiscal year 2023

According to foreign media reports, Panasonic said in a press release on February 28th that it would build two new production lines at its (Wakayama) plant in Kawayama in western Japan and mass produce 4680 batteries, a new type of lithium-ion battery for electric vehicles, in fiscal year 2023 (April 2023-March 2024).

In order to promote the rapid popularity of electric vehicles, Panasonic has been working to strengthen its lineup of automotive lithium-ion batteries. Panasonic is currently developing 4680 batteries at several locations in Japan. Panasonic will gradually expand its production capacity to prepare for comprehensive promotion.

Panasonic did not disclose the amount of investment in the expansion. But Panasonic plans to invest 80 billion yen ($692 million) in the Kakayama plant, the Nikkei reported earlier. The media also reported that Panasonic's 4680 battery production capacity at the Koyama plant in western Japan can meet the demand for 150000 electric vehicles with an annual capacity of less than 10 GWh,.

Last October, Panasonic unveiled 4680 batteries (46mm in diameter and 80mm in height), about five times the size of the batteries currently supplied to Tesla, meaning Tesla will be able to reduce production costs. In addition, the 4680 battery will increase the mileage of Tesla's vehicle by 20%, which will also help make electric vehicles more attractive to consumers.

At present, Tesla's flagship model Model S has a range of 650km. If it uses 4680 batteries, its mileage will be increased to about 750km. As a result, Tesla will no longer be at a disadvantage in the competition with new models such as the Mercedes-Benz EQS (with a mileage of 770km).

Panasonic is the exclusive manufacturer of Tesla 4680 batteries, which allows Panasonic to maintain its position as a key supplier to Tesla. Although Tesla is looking for new battery suppliers in China and elsewhere, at least in the more expensive models, Tesla still uses Panasonic batteries.