The energy store inside each Tesla electric vehicle is changing to use a new, larger battery, and Panasonic is gearing up for mass production of them by March 2024.
Tesla announced its next-gen battery tech back in 2020 and at the time stated the new 4680 battery would allow for a $25,000 electric car. Production of the new battery is well underway, with Electrek reporting earlier this month that Tesla has already produced a million of them. Now Panasonic is getting in on the action.
As Reuters reports, Panasonic has confirmed it will begin mass production of 4680 batteries by the end of March 2024. In order to that, the Japanese company is going to build two new production lines located at its existing Wakayama factory in the Kansai region, with the planned investment thought to be around $692 million. The Model Y is expected to be the first EV to ship with the new batteries and structural battery pack installed this year.
Tesla says the larger 4680 battery, which gets its name from the 46-by-80mm dimensions, offers five-times the energy storage, allowing for a 16% increase in range, and six-fold increase in power. At the same time, it's expected to reduce battery manufacturing costs by 50 percent. That should allow electric vehicle pricing to fall, not only due to the reduced cost, but because fewer batteries are required to hit minimum range targets.