Photographer: Yuki Furukawa/Bloomberg

Panasonic may build a factory in the U.S. for Tesla 4680 battery cell production not far from Giga Texas, another news media reported, citing unnamed sources. Production batteries close to Tesla's factory will reduce the cost of producing its cars.

Panasonic Holdings is considering building a new battery plant in the U.S. to supply Tesla, the Nikkei reported, citing unnamed sources. The Japanese manufacturer plans to produce a new type of high-capacity battery developed and unveiled by Tesla in 2020, and plans to begin production as early as fiscal 2024.

Several candidate locations are being considered, including Oklahoma, according to the information. Another source, in March 2022, said that in addition to Oklahoma, Panasonic is considering Kansas. Panasonic plans to run the new plant on its own. Sources said the site will be determined based on subsidies and other support measures from local governments. The decision to build the plant will be based on the cost-effectiveness of the new lithium-ion batteries that Panasonic will initially produce at its plant in Japan's Wakayama Prefecture starting in the fiscal year 2023.

For the first time, information about the construction of a Panasonic factory in the U.S. appeared in mid-March 2022. At that time, sources said that this idea was at an early stage. The source said Panasonic plans to produce the newly developed, larger, and more powerful 4680 battery at the new factory. The company may also install lines for the production of other types of batteries at the new facility, although this will directly depend on consumer demand.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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