OSAKA, Japan and PALO ALTO, Calif.—Panasonic Corp. will supply close to two billion automotive-grade lithium-ion battery cells to Tesla Motors over four years under a near agreement between the two firms.
According to the pair, the agreement builds on a multi-year collaboration to develop next-generation automotive-grade battery cells and expands their initial agreement signed in 2011.
“This expanded agreement with Panasonic is important to Tesla as we continue to increase the pace of production,” Tesla CEO and co-founder Elon Musk said in a release.
The Li-ion cells supplied by Panasonic will be used in Tesla’s Model S sedan, as well as its upcoming Model X SUV.
The Model X is scheduled to go into production by the end of 2014.
Panasonic and Tesla already boast the highest energy density and best performance cells in the market.
The Japanese technology giant’s cylindrical cell is a customized technology designed specifically for optimizing electric vehicle quality and life.
More than 130 million customer miles have already been driven by Panasonic-powered Teslas, including the latter’s Roadster and Model S models.
“We are extremely proud to be a strategic partner of Tesla,” said Yoshihiko Yamada, president of the Automotive & Industrial Systems Company, an internal company of Panasonic.
“Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla’s growing needs as it expands its production of EVs.”