The Japanese electronic giant Panasonic is preparing to become a major manufacturer of Tesla Inc’s new battery, which the company claims will fit the needs of its customers.
Tesla, the American electric car giant, reached a new milestone in January this year by producing one million units of the 4680 cylindrical lithium-ion battery cell, which will be used in the Model Y EV.
The company tweeted a photo of the employees in front of the Kato Road pilot facility in Fremont, California, saying: “Celebrating our one-millionth 4680 cells in January.”
Preparations
In February it was first reported that the Japanese company began renovating one of its facilities to start testing mass production of this battery. At that time, its Chief Financial Officer Hirokazu Umeda said that Panasonic will start test production of a next-generation 4680 battery at a facility in Japan’s western Wakayama Prefecture.
Panasonic has been working to develop the battery, which it plans to offer to the American EV giant, for the past year and a half.
Because the battery has a greater capacity, it requires fewer cells and related elements to power an electric vehicle, prompting Tesla CEO Elon Musk to hail the technology as the key to unlocking the $25,000 EV.
In a recent interview at Panasonic’s headquarters in Osaka, Kazuo Tadanobu, who is the chief executive officer of the company’s energy unit, stated that developing the new batteries has taken an enormous amount of stamina during the previous months.
While it may be tempting to explore ways to squeeze more energy into existing cell sizes, Tadanobu remarked that changing the overall design took “considerable nerve” and the company didn’t know how they would be received.
According to the executive, Tesla has admitted that Panasonic’s new batteries are viable and reach the level of performance it seeks.
However, the Japanese company is expected to begin commercial production of 4680 batteries in the fiscal year beginning April 2023.
Additionally, it is believed that Panasonic may have lofty goals for its new battery. Recent reports claimed that the company is considering building a new factory in the United States to supply Tesla with what will most likely be 4680 cells. But according to Tadanobu, at this point, no decision has been made.
Challenges
But in the case of mass production of this battery, there are some challenges that cannot be overlooked.
The battery’s larger size and design make it more vulnerable to particle contamination, which is a common cause of EV battery fires caused by minuscule metal pieces finding their way into the centre of a cell.
Tadanobu believes that Panasonic’s focus on safety will help it maintain a competitive advantage in the future, even as other competitors are rumoured to be considering production.
Panasonic’s advantage, according to him, is its ability to use craftsmanship to maintain safety even while increasing battery performance.
He also said that the company will work to maintain its top position after leading cell development and noted that Panasonic is developing 4680 batteries because it sees this as a new path forward.
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