Panasonic Energy to Mass-Produce High-Capacity EV Batteries

By Daniel Leussink and Maki Shiraki
KINOKAWA, Japan (Reuters) – Japanese Tesla (NASDAQ:TSLA) supplier Panasonic (OTC:PCRFY) Energy has finalized preparations for the mass production of its high-capacity electric-vehicle batteries, the company announced on Monday as it seeks to start supplying these cells to automakers.

Panasonic Energy’s renovated plant in Wakayama prefecture will be the main factory for producing the 4680 cells, which claim five times the capacity of the smaller 2170 cylindrical batteries.

The Panasonic unit has sent samples of the 4680 batteries to some automakers to which it is already a supplier and intends to start production after receiving approval from clients, according to a Panasonic spokesperson.

Previously, it was stated that production of the 4680 cells at the Wakayama plant, which used to manufacture parts for automotive batteries, was expected to begin in the first half of the current business year starting in April.

These larger cells, measuring 46mm in diameter and 80mm in height, would enable automakers to extend electric vehicle driving ranges and use fewer cells to achieve the same battery pack capacity, per the company statement.

After years of delay and production ramp-up challenges, Tesla commenced Cybertruck deliveries in November 2023. While Tesla already produces 4680 batteries, sources revealed a significant bottleneck for the truck is the speed of battery production.

Panasonic, a longstanding battery supplier for Tesla, is building its second U.S. battery plant in Kansas, projected to start production next year alongside an existing facility in Nevada.

The company hosted a ceremony marking the completion of mass-production preparations and showcased an inspection line featuring trays stacked with silver-colored cells. CEO Kazuo Tadanobu disclosed plans for annual battery production capacity reaching several gigawatt hours. He emphasized expectations for global EV market growth in the medium to long term.

The Wakayama facility is projected to employ around 400 staff for the development and production of the new batteries by March 2025 and will be a site for testing processes to potentially implement in other global battery factories.

Additionally, Panasonic Energy already produces 2170 and 1860 cylindrical EV batteries at its Suminoe and Kaizuka plants in Japan. The battery manufacturer and Subaru (OTC:FUJHY), key in the U.S. market, announced plans to establish a plant in Gunma prefecture north of Tokyo for automotive battery supply starting in the 2028 business year.