Panasonic aims to boost battery production at Tesla's Nevada Gigafactory
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Panasonic Holdings (OTCPK:PCRFY) has accelerated plans to expand production of electric vehicle batteries at a factory in Nevada jointly operated with Tesla (NASDAQ:TSLA), according to Nikkei Asian Review.
The Japanese electronics, reportedly responding to pressure from Tesla (TSLA) for more battery production, will install a 15th production line at the Gigafactory in Nevada. The new line is scheduled to begin operation in one to two years.
After the expansion, annual production capacity at the Nevada Gigafactory is estimated to increase about 10% by March of 2026. That would be enough battery capacity for 500K to 700K Tesla Model 3s.
Last year, Panasonic (OTCPK:PCRFY) announced last year a multibillion-dollar investment in a battery factory in De Soto, Kansas in an effort to keep up with growing electric vehicle demand. That site is part of a broad plan to quadruple EV battery production capacity by 2030 and developing the new 4680 battery. However, the Inflation Reduction Act and directions from Tesla (TSLA) have led Panasonic (OTCPK:PCRFY) to focus on quickly increasing battery production and use the Kansas plant to produce 2170-type batteries. While Tesla (TSLA) is developing and producing its own 4680 batteries, there is some speculation the EV giant is not making as much progress as anticipated.
Shares of Tesla (TSLA) traded flat in premarket action on Tuesday at $217.45 vs. the 52-week trading range of $101.81 to $314.67.
The article has been edited to clarify estimated production increase
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