Panasonic launches prototype battery to cut down Tesla’s production cost

Panasonic has reportedly announced introducing a brand-new large prototype battery especially designed to aid Tesla Inc in cutting down its production cost for the electric vehicles (EV). Through this launch, the Japanese company is seeking to establish strong ties with its U.S based customer.

According to reliable reports, Kazuo Tadanobu, President of Panasonic Energy, introduced to the media the battery which is approx. five times the size of the batteries currently being used by Tesla. He also quoted that Panasonic had no plans of manufacturing Lithium Iron Phosphate (LFP) at cheaper price for the EVs.

The reports of Tesla’s expansion of battery suppliers to LG Energy Solution in South Korea and Contemporary Amperex Technology Co (CATL) in China, and Panasonic’s sale of Tesla’s share evoked speculations over the future of their partnership.

As the only manufacturer of the 4680-battery format, Panasonic is reportedly a vital link in the supply chain of the EV makers.

According to credible sources, Panasonic with its manufacturing plant in Nevada, still hasn’t confirmed the final date of full-size production.

Reportedly, Tesla might still have to rely on CATL for LFP for China made Model Ys and Model 3, since Panasonic has refused the LFP manufacturing.

As per reports, 95% of the overall LFP batteries are manufactured in China and are safer and cheaper in comparison to nickel-origin batteries, but on the same hand have less energy density and need charging often.

Tesla reportedly claimed the need for the cheaper cobalt-free LFP batteries for its electric vehicles. The company needs a China based partner for the same close to its U.S based factory amidst the political fiascos.

It has been speculated that Apple has also expressed its interest to CATL and China’s electric vehicle manufacturer BYD about stepping in as an LFP battery supplier for Tesla.

However, there’s still no confirmation on the same.