Panasonic will reportedly start mass producing next-gen Tesla batteries in 2023

The image is by Alex Castro.

According to a report from Nikkei Asia, Panasonic is going to start mass producing next-generation batteries forTesla with five times the energy capacity of existing models. In an interview in November, an executive from Panasonic didn't rule out supplying the batteries to other companies. The new batteries promise to boost the range of electric cars and make them more affordable to produce and sell.

Panasonic declined to confirm the report. The company said they are studying various options for mass production, including a test production line. At this time, we don't have anything to announce.

The larger, higher-capacity batteries, known as 4680 battery cells because they measure 86mm x 80mm in size, could increase the range of electric vehicles by 20 percent. They could take a car like the Model S and increase its range from 650 km to 750 km. The Wall Street Journal reported that Panasonic is expanding its Wakayama, Japan plant to mass produce the new batteries, and that test production is due to start in March 2022.

The company hopes to produce the batteries in-house.

At a high profile event in September 2020, the next-generation battery cells were detailed. The company's CEO said the cells are six times more powerful, and reduce cost per kWh by 14 percent, as well as their higher storage capacity. Lower prices and improved range are the sorts of improvements that make electric cars more desirable.

The focus of the 2020 event was on the company's attempts to produce the batteries in-house, to reduce potential disruptions from relying on external suppliers. In a series of posts before the event, Musk said the company would continue to buy battery cells from other companies. Musk said that they intended to increase battery cell purchases from Panasonic, and that they would not achieve high-volume production of the cells until 2022.

The first vehicles with the 4680 cells will ship in the same year as the in-house production of the cells starts, according to Musk. The company was 12 to 18 months away from mass production of the new cells, according to Musk. He warned in July that high-volume production is hard.

Musk is expected to discuss the status of the new battery cells during the company's upcoming earnings call on January 26th.