Tesla Signs New Deal with Panasonic to Supply Batteries from Japan

by Eva Fox January 04, 2021

Tesla Signs New Deal with Panasonic to Supply Batteries from Japan

Tesla has signed a new deal with Panasonic to supply batteries from the manufacturer's Japanese plant. This was confirmed by Tesla, who filed FORM 8-K. The document hints that the deal could be to supply battery cells for Tesla's European business.

On December 29, 2020, Tesla filed FORM 8-K with the SEC, in which it announced a new deal with battery supplier Panasonic. The companies entered into a 2021 Pricing Agreement, effective as of October 1, 2020, until March 31, 2022, regarding Panasonic's supply of lithium-ion battery cells manufactured by Panasonic in Japan.

The new agreement is governed by the earlier supply agreement between Tesla and Panasonic dated October 5, 2011, as amended. Among other things, the amendments relate to specific conditions regarding pricing, capacity commitments, purchase volumes, commitments, and planned investments during the term of the new agreement.

One of the parties to this agreement is Tesla Motors Netherlands B.V., Tesla's European subsidiary. If the supply of batteries were intended only for the United States, the participation of the European side would not be required. Thus, it hints that the new battery shipments from Panasonic may concern the European business of the company, although there is no direct evidence of this.

"On December 29, 2020, Tesla, Inc. and Tesla Motors Netherlands BV (together,“ Tesla ”) and Panasonic Corporation of North America and Sanyo Electric Co., Ltd. (together,“ Panasonic ”) entered into a 2021 Pricing Agreement (Japan Cells) (the “Agreement”), effective as of October 1, 2020 until March 31, 2022, relating to the supply by Panasonic of lithium-ion battery cells manufactured by Panasonic in Japan. The Agreement is subject to the Supply Agreement between Tesla and Panasonic (and/or their respective affiliates) dated October 5, 2011, as amended, and sets forth, among other things, specific terms with respect to pricing, production capacity commitments, purchase volume commitments and planned investments over the term of the Agreement.

Tesla and Panasonic (and/or their respective affiliates) have also entered into other previously disclosed agreements relating to the production and supply of lithium-ion battery cells."

We will follow up in the future with further information.

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter









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