Panasonic is planning 30% increase in battery cell production at Tesla Gigafactory 1 by end-2018
Japanese electronics giant Panasonic has recently disclosed it is planning a 30 percent increase in the production of battery cells at Tesla Gigafactory 1 by the end of year 2018.
Panasonic is the sole supplier of battery cells to electric-vehicle maker Tesla Motors. At Gigafactory 1, Panasonic produces custom 2170 li-ion cells for Model 3 which are co-developed by the company with Tesla. The custom 18650 li-ion cells for Tesla’s Model S and Model X vehicles are produced by Panasonic at its plant in Japan.
In disclosing its plans for a 30 percent battery cell production increase at Gigafactory 1, Panasonic said that Model 3 production at Tesla is ‘gaining momentum.’ Panasonic also added that, by increasing battery cell production, it wants to ensure that any possible shortage of battery cells for Model 3 does not become a bottleneck in the vehicle’s production process.
According to Japanese media reports, Panasonic is planning to add three new battery cell production lines at Tesla Gigafactory 1. As a result of the move, the total number of Panasonic’ battery cell production lines at the Gigafactory will go up to 13.
In reference to Panasonic’s plans, the company’s Chief Financial Officer Hirokazu Umeda said: “We are ramping up a new (battery production) line now and expect the business to contribute not just to our revenue but also to our profit from the second half (starting in October).”
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