Panasonic could be the sole manufacturer of Tesla’s batteries
Panasonic may end up being the only company manufacturing batteries for Tesla Motors at the automaker’s new gigafactory. The factory is meant to reduce the overall cost of battery technologies by producing them at a rapid pace. The batteries produced at the factory will make use of new technology themselves, making them more efficient, less expensive, and more viable for transportation purposes. Panasonic is on track to become the sole manufacturer of the batteries that will be produced by the gigafactory.
Decisive plans have not yet been released by Panasonic due to modest demand for batteries and electric vehicles
While Panasonic is in position to become Tesla’s sole manufacturer of batteries, the company does not actually have a timeline for this decision. The company is not expected to make a decision on the matter this year, claiming that any investment it makes into the gigafactory and Tesla Motors would be relatively small. This is largely due to the expectation from Panasonic that the demand for electric vehicles and battery technology will not see any significant increase in demand this year.
Battery technology continues to become more attractive to consumers thanks to recent advances
Advances in battery technology are expected to make electric vehicles more popular with consumers. While Tesla has already managed to establish strong support among consumers, many people are unwilling to purchase electric vehicles because of their inefficient nature. Conventional electric vehicles have limited operational range and their batteries take hours to charge. Tesla has committed itself to resolving these issues, and the automaker’s solution involved the development of new batteries.
Demand from Tesla for batteries continues to grow
Panasonic expects to invest some $275 million in battery production this year, twice as much as it had invested last year. This is largely due to the growing demand for battery manufacturing coming from Tesla. The automaker is currently one of the most prominent companies in the clean transportation field and has a high need for new batteries that will be used in new generations of its popular electric vehicles.