Panasonic Energy has begun mass production of its latest cylindrical EV battery cells at its Wakayama facility in western Japan, with Tesla as the primary customer. The new 4680 battery cells, named after their dimensions (46mm in diameter and 80mm high), offer five times the energy capacity of their predecessors and require fewer parts and workers to assemble. This advancement is expected to help reduce production costs and increase efficiency for automakers.
Despite the new product launch, Panasonic faces challenges as global electric vehicle (EV) sales growth has slowed in 2024. Tesla, which relies on Panasonic batteries for its high-end models, saw a 4.9% drop in sales, raising concerns about Panasonic’s heavy reliance on the U.S. automaker.
Looking to diversify, Panasonic recently secured deals to supply batteries to Mazda and Subaru by 2027. The company plans to double its domestic production capacity by 2030 to accommodate the growing demand from other automakers. However, the competitive landscape remains fierce, with rival LG Energy Solution also ramping up its production of similar battery cells in South Korea.
