With Launch Of Tesla Model 3, Panasonic Aims To Double Battery Cell Production In 3 Years

Panasonic

JUL 8 2016 BY ERIC LOVEDAY 9

Panasonic 18650 High Capacity Lithium Batteries For Model S And X

Panasonic 18650 High Capacity Lithium Batteries For Model S And X

Panasonic Cell

Panasonic Cell

Panasonic has announced that it expects to at least double its annual sales of lithium-ion battery cells in the automotive field over the next three years.

According to Panasonic, much of the boost will come from the upcoming Tesla Model 3.

As Automotive News reports:

“Kenji Tamura, an executive officer in charge of Panasonic’s automotive and industrial systems business, said he expects the firm’s annual automobile battery sales to grow to $3.98 billion (400 billion yen) in the fiscal year through March 2019 from 180 billion yen in the year ended March 2016.”

Tamura confirmed that Panasonic is indeed moving forward its $1.6 billion investment in Tesla’s $5 billion Gigafactory at the request of Tesla.

As of right now, Panasonic is the sole cell supplier for the Model 3, but reports have suggested that Tesla may be looking for an additional partner. However, Tesla has denied these reports.

Source: Automotive News

Categories: Tesla

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9 Comments on "With Launch Of Tesla Model 3, Panasonic Aims To Double Battery Cell Production In 3 Years"

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Misleading headline… double revenue, not double production.

If anything, this means production will need to more than double.assuming cost per kWh continues to drop.

Good catch. I’ll bet they will need to at least triple production to double revenue, since the costs will come down at the Gigafactory.

Because there will be zero improvement in manufacturing efficiency? You’re not understand how large scale manufacturing works. The vast majority of the cost is in production, not the raw materials.

I never claimed to know how large scale production worked.

Elon Musk said the Giga Factory would reduce the cost of EV batteries (probably by KWh) by at least 30%. That’s the only assumption I made.

I’m well aware of the new 20700 cell size, economies of scale, local sourcing of raw materials, huge investment by Panasonic, reduced shipping costs, favorable tax incentives and many other factors that will drive down costs. But, none of that is necessary to understand that battery costs will drop significantly.

I guess they are talking about the new 20700 cells that the Gigafactory will be churning out.

My SWAG is Samsung will be the second battery source. If not in the GF at the location where they bought in silicon valley.

I just want my model three with a supercharger at a Cracker Barrel

I am OK if my Model 3 can Use the Supercharger for no extra fee if I get a (potentially) bigger Battery – and the Superchargers are at Applebee’s! Even if they are at Dennies!