Japan's Panasonic Unveils Next-Generation Battery Meeting Tesla's Requirements

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Panasonic, the largest battery supplier for electric vehicle maker Tesla, has unveiled a prototype of the next-generation '4080' battery that meets Tesla's requirements.

According to the Wall Street Journal (WSJ) on the 25th (local time), Panasonic revealed the prototype the day before and stated that most of the technical issues necessary for production have been resolved.

The 4680 battery, referring to a diameter of 46mm and a length of 80mm, is a next-generation cylindrical NCA (Nickel-Cobalt-Aluminum) battery introduced by Tesla CEO Elon Musk at the 'Battery Day' event last September.

Panasonic increased the energy capacity by 5 times, output by 6 times, and driving range by 16% compared to the batteries it previously supplied to Tesla, and the charging speed has also become faster.

While the 4680 battery has significant potential to reduce the battery-related costs of Tesla electric vehicles, Panasonic explained that it is technically more challenging to produce.

Tesla recently announced in its Q3 earnings report that it expects to release electric vehicles equipped with the 4680 battery next year.

Kazuo Tadanobu, head of Panasonic's battery division, said they will soon begin preparations for the commercial production of the 4680 battery and plan to start trial production of the 4680 battery in Japan by March next year.

Tadanobu emphasized that the 4680 battery was developed reflecting Tesla's strong requirements and will be supplied to Tesla, expecting the relationship with Tesla to become even stronger.

However, he did not mention the expected timing for mass production.

He also said there is no need to miss opportunities and that they are considering various possibilities, leaving open the potential for diversifying sales channels, but added that this would only be possible as long as supply to their most important customer, Tesla, is not disrupted.

He further stated that there are no plans to produce lithium iron phosphate (LFP) batteries, which Tesla has decided to install in its standard range models and other main vehicles.

He added that Tesla's decision to expand the use of LFP batteries will not affect the demand for Panasonic batteries.

Accordingly, major foreign media outlets forecast that Tesla will receive LFP batteries for the 'Model 3' standard range model and others from its existing supplier, China's CATL.

Tadanobu also did not confirm the truth of reports that Apple is in contact with Panasonic regarding the Apple Car.