Tesla’s Largest Battery Partner Has Paused Their Multi-Billion Dollar Initiative | Carscoops
In the second quarter, Tesla's global deliveries decreased by 14 percent, totaling 381,122 units.
Panasonic aimed to increase production to 30 GWh of electric vehicle batteries by March 2027. The technology company has been providing Tesla with batteries since the launch of the first-generation Roadster. However, last year, Panasonic scrapped plans to build a third battery plant in the U.S.
Tesla is facing challenges as, soon after reporting disappointing sales figures for the second quarter, another issue has emerged. Panasonic, a key battery supplier for the automaker, is postponing its plans to enhance electric vehicle battery production at its Kansas facility.
Originally, Panasonic intended for the factory to achieve full production of 30 GWh of EV batteries by March 2027, but this has now been confirmed as unattainable, and the company has not announced a new timeline.
Investment is slowing due to a plateau in demand.
Panasonic's Kansas plant is its second battery manufacturing site in the U.S., with around $4 billion invested in it. Anticipating substantial growth in its EV battery sector, the company also intended to build a third facility in the U.S., but those plans have been postponed as of 2024 due to a flatlining market, as reported by Nikkei Asia.
Tesla likely shares some responsibility for this situation. As Panasonic’s largest single customer of EV batteries, Tesla has been encountering difficulties recently, despite the recent launch of the updated Model Y. Earlier this month, the automaker disclosed that global deliveries dropped by 14 percent in Q2, declining from 410,244 units to 381,122. This decline was slightly less than the 13 percent drop in Q1, which saw sales fall to 336,681.
The Model 3 and Model Y are by far Tesla’s top-selling vehicles, making up 373,728 of the total units delivered in the second quarter. In contrast, combined sales for the Model S, Model X, and Cybertruck amounted to only 10,394.
Although the Kansas facility won’t reach its intended capacity as soon as originally planned, EV battery production at the site will commence soon. Panasonic has collaborated with Tesla on its new 4680 battery cells and has been working with the company since 2010, when the first-generation Roadster was released.
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Tesla’s Largest Battery Partner Has Paused Their Multi-Billion Dollar Initiative | Carscoops
During the second quarter, Tesla's worldwide deliveries decreased by 14 percent to 381,122 units.