Panasonic invested $704 million to start mass production of 4680 batteries for Tesla in 2023

Webmaster's House (ChinaZ.com) January 25 News: According to Nikkei, Panasonic will invest $704 million to start mass production of 4680 batteries for Tesla in 2023. The plant is expected to have an annual production capacity of approximately 10 GW, or approximately 20% of Panasonic's production capacity.

Panasonic will begin mass production of new lithium-ion batteries, increasing the range of electric vehicles by more than 15% as early as 2023. We're talking about the 4680 battery, developed by Tesla and launched in the fall of 2020. The new battery is expected to provide vehicles with one of the largest battery weight ranges in the world.

Panasonic has reportedly begun developing a new 4680 battery at Tesla's request. CEO Elon Musk said earlier that the company would make the batteries itself, but would also continue to source from Panasonic or other battery makers.

Panasonic is expanding its plant in Wakayama Prefecture and introducing new equipment to mass-produce Tesla's new batteries, with a new investment of about $704 million. Production of the new batteries will be established there first, possibly for Tesla's Shanghai factory Model Y, and possibly sending some to the manufacturer's other factories around the world.

The annual capacity of the Wakayama plant is still under discussion, but it is expected to be about 10 GW per year, equivalent to about 150,000 batteries for electric vehicles. This accounts for about 20% of Panasonic's current production capacity. The company plans to start partial work this year to create safe and efficient technology before mass production begins next year. Panasonic also plans to expand large-scale production at plants in the United States or other countries.