Panasonic Corp. of Japan is trying to buy property in the United States for a mega-factory to produce a new type of electric vehicle battery for Tesla, according to national broadcaster NHK.
Panasonic is considering constructing the facility, which is expected to cost several billion dollars, in Oklahoma or Kansas, close to Texas, where Tesla is planning a new electric car plant, according to NHK.
Panasonic's project in the United States was not given a timetable by NHK. The source of the information was not cited. Panasonic stated that the rumored proposal was not announced.
Panasonic, a long-time Tesla supplier, has announced that two new manufacturing lines at its western Japanese plant in Wakayama will begin mass producing the new type of lithium-ion battery for Tesla by the end of March 2024.
The 4680 format battery (46 millimeters wide by 80 millimeters tall) is nearly five times larger than those now supplied to Tesla, allowing the company to reduce production costs while increasing vehicle range.
Panasonic's connection with Tesla dates back more than 10 years, when the two companies agreed to work together as Tesla's primary battery supplier.
Tesla has since increased production and expanded its supply chain to include Chinese producers of less expensive lithium iron phosphate (LFP) powerpacks, such as Contemporary Amperex Technology Co.
LG Energy Solution Ltd of South Korea also aims to produce 4680 batteries, according to Reuters sources last year.
Panasonic announced earlier this week that it will begin mass production of 4680 batteries in the fiscal year ending March 2024, with two new manufacturing lines and facilities planned for its Wakayama factory in western Japan.
Elon Musk, Tesla's chief executive officer, has described the batteries as a "major advancement" in the technology field that will allow his business to create electric vehicles for less than $25,000.
While Tesla intends to manufacture the cells in-house, Panasonic has been requested to start making them as well. Panasonic plans to sell the batteries to other manufacturers besides Tesla.
The automaker has an unquenchable thirst for batteries. It has started producing its own battery cells on a pilot line in Fremont, California, but is still relying on outside suppliers such as Panasonic, Contemporary Amperex Technology Co. of China, and LG Energy Solution Ltd. of South Korea.
Gigafactory Texas is projected to see a surge in demand for Tesla's battery cells as it ramps up production of Cybertruck and Tesla Semi, both of which require a large number of cells per vehicle.
Meanwhile, Panasonic shares were down 3% in Tokyo morning trade, compared to a 2.5% drop for the Nikkei 225 index.
