Panasonic plans to build a plant in the United States to supply 4680 batteries to Tesla

Panasonic is seeking to buy land in the United States to build a large factory to produce batteries for Tesla's new electric cars, the Japan Broadcasting Association (NHK) reported on Friday.

Panasonic is reportedly considering spending billions of dollars to build a plant in Oklahoma or Kansas. The two states are close to Texas, where Tesla is preparing a new electric car factory and recently opened a new headquarters in Austin.

NHK did not disclose the source of its information. In response to the report, a Panasonic spokesman in Osaka responded that the plant plan reported by NHK was not based on the information provided by the company.

Panasonic, a long-time supplier to Tesla, announced this week that it plans to build two new production lines and other facilities at the Wakayama plant in Japan to start mass production of new 4680 lithium-ion batteries for Tesla by the end of March 2024.

The 4680 battery is five times larger than the battery currently supplied by Panasonic to Tesla, with a diameter of 46 mm and a height of 80 mm. This can help Tesla reduce the cost of electric vehicles and increase the vehicle's mileage on a single charge.

Musk, chief executive of Tesla, called the battery a "huge breakthrough" in technology that would make it possible for his company to produce electric cars priced at $25000. Although Tesla plans to produce its own batteries, it has asked Panasonic to start production as well. Panasonic also plans to sell batteries to carmakers other than Tesla.

Tesla's demand for batteries seems endless. The company has begun producing its own batteries at its plant in Fremont, Calif., while continuing to rely on external suppliers such as Panasonic, Ningde Times and South Korea's LG energy solutions.

In recent months, major automakers have announced that they will increase their battery production capacity. In December, Toyota said it would build its first battery plant in the United States in North Carolina with an investment of $1.29 billion and planned to start production in 2025.