Panasonic Energy prepares for high-capacity EV battery production

Panasonic Energy, a Japanese company that supplies batteries to Tesla, has announced that it has completed preparations for the mass production of its new high-capacity electric vehicle batteries. This development marks a significant step forward as the company aims to begin supplying these advanced cells to various automakers.

The focal point of this endeavour is Panasonic Energy's refurbished facility located in the Wakayama prefecture in western Japan. This plant has been designated as the primary manufacturing site for the new 4680 cells. These batteries represent a substantial improvement over their predecessors, boasting a capacity that is five times greater than the smaller 2170 cylindrical batteries currently in use.

In its efforts to introduce these new batteries to the market, Panasonic Energy has already distributed sample 4680 cells to several of its existing automotive clients. The company is now poised to commence full-scale production once it receives approval from these customers, according to a spokesperson from Panasonic.

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Previously, Panasonic had indicated its intention to initiate production of the 4680 cells at the Wakayama plant during the first half of the current fiscal year, which began in April. This facility, which formerly manufactured components for automotive batteries, has now been repurposed for this new endeavour.

The 4680 cells, named for their dimensions of 46mm in diameter and 80mm in height, offer significant advantages to automakers. These larger batteries will enable electric vehicles to travel greater distances on a single charge and allow manufacturers to achieve the same battery pack capacity using fewer individual cells, as stated by Panasonic Energy.

This development comes at a crucial time in the electric vehicle market. Tesla, a major player in the industry, began delivering its long-awaited Cybertruck in November 2023, following prolonged delays and challenges in ramping up production. While Tesla produces its own 4680 batteries, sources informed Reuters in late 2023 that one of the primary obstacles facing the company in Cybertruck production was the rate at which it could manufacture these batteries.

Panasonic, which has been a long-standing battery supplier for Tesla, is expanding its production capabilities beyond Japan. The company is currently constructing its second battery plant in the United States, located in Kansas. This facility is scheduled to begin operations next year, complementing Panasonic's existing plant in Nevada.

To commemorate the completion of preparations for mass production of the 4680 batteries, Panasonic Energy held a ceremony at the Wakayama plant. During this event, the company showcased an inspection line where trays stacked with the silver-colored cells could be observed moving through the production process.

Kazuo Tadanobu, CEO of Panasonic Energy, informed reporters after the ceremony that the company plans to initiate battery production with an annual capacity of several gigawatt hours. He also expressed optimism about the long-term growth prospects of the global electric vehicle market.

The Wakayama plant is expected to play a crucial role in Panasonic's battery production strategy. By March 2025, the facility is projected to employ approximately 400 staff members dedicated to the development and production of the new batteries. Moreover, the plant will serve as a testing ground for new processes that could potentially be implemented at Panasonic's other battery factories worldwide.

It's worth noting that Panasonic Energy's battery production is not limited to the new 4680 cells. The company continues to manufacture 2170 and 1860 cylindrical EV batteries at its Suminoe and Kaizuka plants in Japan.

In a related development, Panasonic Energy recently announced a collaboration with Subaru, a Japanese automaker with a strong presence in the U.S. market. The two companies have agreed to establish a new plant in Gunma prefecture, north of Tokyo, which will focus on producing automotive batteries. This facility is slated to begin supplying batteries in the 2028 fiscal year, further solidifying Panasonic's position in the automotive battery market.