Talks had been ongoing but a deal is now struck.
Panasonic will supply the Gigafactory in Nevada
Tesla has other battery suppliers too.
Panasonic has served as Tesla’s sole battery supplier since the California start-up began. They built the battery cells in Japan and exported them to California for the Model S and the Model X. Tesla and Panasonic co-developed cells for the Model 3 at the Nevada Gigafactory. Since then, Tesla’s signed on with a few other battery suppliers including LG Chem and Samsung SDI. Now, Tesla and Panasonic have signed a new deal that covers the next three years.
This new arrangement, as reported by Automotive News Europe, involves production capacity terms for Panasonic as well as a purchase volume commitment by Tesla, for the Nevada Gigafactory, for the first two years of the agreement. This new deal seems to also include the development of new, higher capacity batteries.
This new deal was signed last week and took effect back on April 1st. Tesla did amend some terms and conditions with Panasonic whereby the terms are to expire 10 years after the battery supplier achieves certain manufacturing milestones.
We look forward to finding out more about these new batteries.