Panasonic and Tesla to expand supply of automotive-grade battery cells

OSAKA, JAPAN: Panasonic Corp. and Tesla Motors have announced that the two companies have reached an agreement in which Panasonic will expand its supply of automotive-grade lithium-ion battery cells to Tesla.

The two companies updated and expanded their 2011 arrangement to now supply nearly 2 billion cells over the course of four years with this agreement. The lithium-ion battery cells that were purchased from Panasonic will be used to power the award winning Model S as well as Model X, a performance utility vehicle that is scheduled to go into production by the end of 2014.

This agreement builds upon a multi-year collaboration between Panasonic and Tesla to develop next-generation automotive-grade battery cells and accelerate the market expansion of electric vehicles. Panasonic's cells combined with Tesla's proven EV battery expertise have already enabled more than 130 million customer miles driven in Tesla Roadsters and Model S.

Panasonic and Tesla have developed a next-generation battery cell technology that provides the highest energy density and best performance cells in the market. Panasonic's cylindrical cell is a customized technology designed specifically for optimizing electric vehicle quality and life. These cells are integrated by Tesla into the battery pack in a way that enables an industry-leading range of approximately 265 miles for the Model S.

Yoshihiko Yamada, president of the Automotive and Industrial Systems Company, an internal company of Panasonic said: "We are extremely proud to be a strategic partner of Tesla. Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla's growing needs as it expands its production of EVs."