Tesla And Panasonic Agree On Expanded Battery Cell Supply

Electric carmaker Tesla has announced an expanded agreement with partner Panasonic on the supply of battery cells and further development.

Reports this week have also pointed to a joint venture in Tesla’s planned ‘Gigafactory’ battery plant in the US, although the two companies have yet to confirm plans on that side of the partnership.

For now, Tesla has confirmed that its existing battery cell supply deal with the Japanese technology giant has been expanded to accommodate increased production of the Model S sedan and the introduction of the new Model X SUV.

“This expanded agreement with Panasonic is important to Tesla as we continue to increase the pace of production,” Tesla Co-Founder and CEO Elon Musk said.

“We look forward to strengthening our relationship with Panasonic, and I’m confident that this partnership will continue to be an integral part of Tesla’s success for years to come.”

Yoshihiko Yamada, president of Panasonic subsidiary Automotive & Industrial Systems Company, said: “Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla’s growing needs as it expands its production of EVs.”