Panasonic has unveiled its intention to manufacture an upgraded version of the 2170 cells, utilized in Tesla’s Model 3 and Model Y, at its Nevada plant in collaboration with Tesla. Anticipated to debut in 2024 or 2025, these advanced cells boast enhanced energy density, paving the way for potential reductions in electric vehicle (EV) prices.
In a recent Bloomberg interview, Panasonic’s Chief Technology Officer, Shoichiro Watanabe, expressed the company’s commitment to quadruple production capacity by the 2030 fiscal year. Watanabe emphasized that achieving this goal wouldn’t necessitate constructing new facilities or significant investments in production plans, emphasizing plans to simultaneously expand battery capacity and enhance productivity.
Panasonic, a key supplier to Tesla, currently produces 10% of the world’s electric vehicle batteries. The company aims to ramp up production of a revised version of the 2170-type cylindrical battery cells, known for their application in Tesla’s popular Model 3 and Model Y. The objective is to increase battery production by 10% while focusing on improving the energy density of the 2170 cell, with the potential to drive down overall EV costs. Better energy density implies fewer cells required for car production, potentially leading to reduced vehicle prices.
Panasonic is in the process of constructing a new factory in De Soto, Kansas, dedicated to manufacturing 2170-type cells for EVs. Initially expected to produce the larger 4680-type cylindrical battery cells for Tesla’s next-gen models, the project was delayed. Despite no confirmation on the location, Panasonic is set to announce a third US battery manufacturing plant, aiming to boost production capacity to 200 GWh by 2030, up from the current 50 GWh.
The company’s recent agreement to acquire nano-composite silicon anode material from Sila, a California-based firm, highlights a strategic move toward cutting-edge battery technologies. Sila’s Titan Silicon anode powder, a potential game-changer for traditional lithium-ion batteries, could enable 500-mile nonstop trips and 10-minute recharges, according to reports.
Panasonic’s strategic initiatives align with the Biden administration’s Inflation Reduction Act, providing subsidies to battery cell manufacturing in the US. The company foresees a substantial $587 million increase in operation during the fiscal year ending March 2024, thanks to this supportive policy landscape.