Japan based developer of diverse electronics technologies and solutions for customers Panasonic Corp. (TYO: 6752) is set to begin mass production of new lithium-ion battery for leading electric vehicle make Tesla Inc. (TSLA) before the month of March wraps up.
Panasonic unveiled the new battery back in October, the 4680 format (46 millimetres wide and 80 millimetres tall) battery is almost five times larger compared to the currently one supplied to Tesla.
This comes as good news to Tesla since the EV manufacturer will be able to lower its production costs. The new battery is also expected to improve the Tesla’s vehicle range which in return will help the company lure more drivers.
Panasonic will set up new productions lines at its Wakayama factory in western Japan to build the batteries. The company however failed to disclose the amount it will be spending on the expansion exercise.