The role of the electric vehicle (EV) battery has shifted considerably over the past few years, and now, more than ever before, EV batteries are in incredibly high demand trying to keep up with the budding EV market.
On Thursday, Panasonic stated that it was working to create a new battery cell for Tesla, based on the company’s new 4680 cell format. The partnership, a decade old at this point, has been fruitful for both companies – and it’s going to become even more fruitful as battery demands rise while each company helps to head up the transition to zero-emission vehicles.
Panasonic ❤️’s 4680! Tesla isn’t just building their own batteries. They have their partners like Panasonic and likely LG building batteries to their specs! Tesla needs every 🔋 they can get! 🚀 https://t.co/UknRU3zAZG
— TeslaGoesPlaid | Mike 🔋🚀 (@TeslaGoesPlaid) October 29, 2020
In Q2, Panasonic reported an 11% increase in second-quarter operating profit, outdoing the estimates of analysts. Between July and September, operating profits rose from 83.9 billion yen a year ago to 92.8 billion yen now; a sizeable increase in profits. The company is also planning to launch another additional production line at Gigafactory Nevada.
Hirokazu Umeda, Panasonic’s Chief Financial Officer (CFO), said at a briefing, “We have considerable know-how for that battery.” He continued, “We started working on it immediately after Tesla’s Battery Day (in September) and are also preparing to set up a prototype production line in parallel. We are targeting a profit margin of around 5% at our Tesla battery business within two to three years.”
With the partnership between Tesla and Panasonic going so swimmingly, hopefully, Panasonic can help Tesla cut battery costs enough to unveil the EV company’s $25,000 car, preferably sooner rather than later.
Tesla unveiled its groundbreaking 4680 cell at its recent Battery Day event.
