Panasonic is planning to produce new lithium-ion batteries as early as 2023 for Tesla that could increase the range of electric vehicles by up to 20 percent, Nikkei Asia reported.
The Japanese company plans to invest about $705 million in production facilities to make the new batteries for Tesla from as early as 2023.
Though the battery is said to be twice as big as previous versions, it has a five-fold increase in energy capacity.
The 4680 cell will boost the range of electric vehicles. The new cells would increase the Model S’s range from about 650 kilometers, about 405 miles, to 750km, or 465 miles.
Panasonic will start making the cells on a small scale this year to develop safe and efficient processes before entering mass production.
Panasonic is expanding its Wakayama, Japan plant to mass produce the new batteries.
In November last year, the head of Panasonic’s battery division said that the company hasn’t ruled out producing the cells for other automakers, though Tesla is its priority.
Earlier, Musk said Tesla would continue to buy battery cells from other companies. “We aim to increase, not reduce battery cell purchases from Panasonic, LG & CATL,” Musk tweeted.