said on Thursday that it is working hard to develop a new for . Based on the new battery format of the American electric car manufacturer, the Japanese company will establish a ten- partnership with Tesla.

Tesla’s new battery is a larger cylindrical battery called 4680, which can store more energy and is easier to manufacture. It is for achieving the goal of reducing battery costs by half and increasing battery production by nearly 100 times by 2030 Vital.

Panasonic’s chief financial officer Umeda Hiroichi said in a briefing: “We have considerable expertise in this battery.” The company reported an 11% increase in operating profit in the second quarter, exceeding analyst expectations.

He added: “We started researching it immediately after the Tesla Battery Festival (September), and we are also preparing to build a prototype production line in parallel.”

The reason why Panasonic decided to develop new batteries for Tesla was that strong sales of Tesla electric vehicles stabilized the profits of its joint venture battery joint venture in Nevada, due to several years of production troubles and delays from US partners.

Umeda also stated that the company has decided to start a new production line at its Nevada plant next year. By around 2022, the plant’s total production capacity will increase by about 10% to 38-39 gigawatt hours (GWh) per year.

He added: “Our goal is to make the profit margin of Tesla’s battery business reach 5% within two to three years.”

Panasonic’s operating profit from to September increased to 92.8 billion yen (approximately 6,632 crore), compared with 83.9 billion yen (approximately 5,995 crore) a year ago.

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Tesla said it plans to produce its own batteries in several highly automated factories around the world, but will continue to use its existing battery suppliers Panasonic, South Korea’s LG Chem and China’s Contemporary Amperex.

With advanced battery design and new manufacturing processes, Tesla CEO Musk promised to cut battery costs by half within a few years and deliver “reasonable price” electric vehicles, despite the experts Question how fast they are implemented.

© Thomson Reuters 2020

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