Panasonic Corp (6752.T) of Japan is planning to buy property in the United States to build a mega-factory to produce a new type of electric vehicle (EV) battery for Tesla Inc (TSLA.O), according to public broadcaster NHK.
Panasonic is considering constructing the facility, which is expected to cost several billion dollars, in Oklahoma or Kansas, close to Texas, where Tesla is planning a new EV plant, according to NHK. Panasonic’s project in the United States was not given a timetable by NHK.
The source of NHK’s information was not cited. Panasonic stated that the rumored proposal was not announced.
Panasonic, a long-time Tesla supplier, has announced that two new manufacturing lines at its western Japanese plant in Wakayama will begin mass-producing the new type of lithium-ion battery for Tesla by the end of March 2024.
The 4680 format battery (46 millimeters wide by 80 millimeters tall) is nearly five times larger than those now supplied to Tesla, allowing the company to reduce production costs while increasing vehicle range.
Panasonic’s connection with Tesla dates back more than a decade when the two companies agreed to work together as Tesla’s primary battery supplier.
Tesla has since increased production and expanded its supply chain to include Chinese producers of less expensive lithium iron phosphate (LFP) power packs, such as Contemporary Amperex Technology Co (CATL) (300750. SZ).
Panasonic shares were down 3% in Tokyo morning trade, compared to a 2.5 percent drop for the Nikkei 225 index.
