Japanese battery manufacturer Panasonic Energy has announced that it has finalised preparations for the mass production of its high-capacity electric vehicle (EV) batteries. The company aims to start supplying these new batteries to automakers in the near future.
The renovated plant in Wakayama Prefecture will serve as the primary production facility for the 4680 cells, which are significantly larger than the company’s previous 2170 cylindrical batteries. Panasonic Energy claims that the 4680 cells have five times the capacity of their smaller counterparts.
The company has already sent samples of the 4680 batteries to several automakers with which it has existing supplier relationships. Panasonic Energy intends to initiate production once it receives the green light from these clients. While it initially planned to start production in the first half of the current business year, the company has now confirmed that it is ready to begin.
The larger 4680 cells offer several advantages for automakers. Their increased capacity allows for extended driving ranges in electric vehicles. Additionally, fewer cells are required to achieve the same battery pack capacity, leading to potential cost savings and weight reduction.
Tesla, a major customer of Panasonic Energy, has been facing production challenges with its Cybertruck, partly due to limitations in the production of 4680 batteries. The automaker has been producing its own 4680 batteries, but increasing production capacity has been a bottleneck.
Panasonic Energy’s CEO, Kazuo Tadanobu, has expressed optimism about the future of the EV market, stating that he expects global demand to continue expanding in the medium to long term. The company plans to start battery production at the Wakayama plant with an annual capacity of several gigawatt hours.
The Wakayama plant is expected to employ around 400 staff by March 2025, focusing on the development and production of the new batteries. This facility will also serve as a testing ground for processes that could be implemented at other battery factories worldwide.
Panasonic Energy already has existing EV battery production facilities in Japan, including the Suminoe and Kaizuka plants. These plants produce 2170 and 1860 cylindrical EV batteries.
In a recent announcement, Panasonic Energy and Subaru, a key automaker in the U.S. market, revealed plans to establish a joint battery plant in Gunma Prefecture. This new facility will supply automotive batteries starting in the 2028 business year.