Panasonic Could Make Battery Cells With Tesla In China

Tesla Panasonic Show stand

MAY 11 2018 BY MARK KANE 4

The Chinese government promised to remove joint-venture requirements for the New Energy Vehicle business by the end of this year, which opens an opportunity for Tesla to enter the largest plug-in market in a bold way.

Tesla Model 3

Production of 2170 cells at the Tesla Gigafactory

It’s expected that Tesla, in the near future, will announce a new Gigafactory in China that will be making electric cars and batteries under one roof.

Read Also – Tesla Model 3 Debuts At Auto China 2018

Currently Tesla produces cars only in Fremont, California, supplying batteries from Japan (Model S/X) and from Nevada (Model 3).

It’s not yet known which models could be produced in China, nor who will be the battery partner for the investment – the first one to consider is Tesla long-term partner Panasonic.

“As already reported, Tesla could in the future launch full-fledged production in China – and we could produce jointly,” Kazuhiro Tsuga said at an earnings briefing, in Panasonic’s first official acknowledgement of possible battery cell production for Tesla in the world’s biggest auto market.

Panasonic currently produces battery cells for Tesla in Japan as well as at Tesla’s so-called Gigafactory in the U.S. state of Nevada. Tesla uses the cells to make battery packs.”

The question is whether Tesla will start in China with the Model 3 or maybe Model Y.

Source: Reuters

Categories: Battery Tech, China, Tesla

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4 Comments on "Panasonic Could Make Battery Cells With Tesla In China"

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Now I see why Warren Buffett and Charlie Munger aren’t excited about Tesla. BYD will be facing a formidable challenger in China. CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS

Part of Xi’s openness announced well before tRump bellowed.

But many political commentators noted that Chinese government spokesmen have in the past made similar pleasant-sounding statements about China’s future cooperation with foreign investors, without China ever before actually following through on those.

I certainly don’t pretend to know if the blustering and childish attempts at international bullying by the Cheeto-in-Chief had any real influence on China’s decision to change its policy. I rather doubt it. I suppose it’s not impossible, but I think it’s more likely that China saw it was going to have to do that sooner or later, if it wants better access to foreign markets. Whether or not the Big Cheeto’s blustering and attempted bullying actually had anything to do with the timing of this… well, again I don’t know.

I didn’t realize that Panasonic is now making batteries in China. I’ll have to eat my words from a comment I made just a day or two ago about China shutting out Japanese battery cell makers.

Interesting that Tesla might extend its partnership with Panasonic to Tesla’s future Chinese Gigafactory. However, Tesla might be better off seeking a different partner, a Chinese partner, for battery cell manufacturing there. It’s not healthy for Tesla’s business to be so heavily dependent on one supplier, and for the same reason it’s not healthy for Panasonic’s business, either.