High demand from Tesla prompts Panasonic to expand its Nevada-based battery business

High demand from Tesla prompts Panasonic to expand its Nevada-based battery business

May 19, 2020 0 By autotimesnews

This is a positive signal indicating a warming partnership between Panasonic and Tesla

Panasonic is experiencing high demand for batteries from Tesla, so partners are already in talks to expand the Nevada-based venture. This was announced by Panasonic CFO Umeda Hirokazu (Hirokazu Umeda).

“We are seeing strong demand from Tesla, exceeding the current capacity of the Nevada plant, amounting to 35 GWh per year,” the source said. “We are currently negotiating capacity expansion.”

This is a positive signal indicating a warming partnership between Panasonic and Tesla, which has become more difficult in recent years due to production problems and delays in the implementation of Tesla’s plans. Recently, Panasonic has even lost the status of an exclusive supplier of batteries for electric vehicles Tesla.

Meanwhile, last month, Tesla released its latest report, ending a profit for the third quarter in a row. Panasonic’s battery-powered factory posted a profit for the second quarter in a row. Note that the Nevada plant, whose construction began in 2014, was unprofitable until the last quarter of last year. But the Japanese manufacturer invested $ 1.6 billion in it.

Based on experience with the Nevada plant, Panasonic previously decided not to build a new battery plant for Tesla in China. Instead, Panasonic supplies batteries for Tesla electric cars manufactured in China from the USA, and for the future Tesla relies on partnerships with South Korean company LG Chem and Chinese CATL.