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Panasonic (OTC: PCRF. And) will invest more than $100 million at Tesla’s Gigafactory 1 plant (NASDAQ: TSLA) in Nevada to increase battery production capacity by 10% to 39 gigawatt hours (GWh) consistent with the year.
The plant is a component of Tesla’s critical infrastructure that generates electric motors and battery packs for Model 3 and Model Y electric vehicles. While either corporation has sought to increase production for some time, their appointments have rarely been strained, Tesla’s sales expansion turns out to have clarified.
According to Nikkei Asian Review, Panasonic will load an additional production line to the thirteen already in service at the plant, which lately produces 35 GWh of lithium-ion battery cells consistent with the year.
Both corporations sought to increase production to 54 GWh consistent with the year, but in April 2019, Panasonic said it was looking to see if the order for electric cars justified a new investment.
Tesla is Panasonic’s largest mobile battery customer, but also acquired Maxwell Technologies last year to help make batteries more effective, and CEO Elon Musk called Panasonic into tweeting that the Model 3’s production was hampered by the strength limitations of his partner’s battery.
A recent Science Channel video reported that the Gigafactory produced thirteen million lithium-ion battery cells according to the day, recommending 80 gigawatt hours according to the year, but Panasonic denies it produces so much and Musk’s previous tweet would also recommend otherwise.
Panasonic has invested $1.6 billion in the battery plant to succeed in the production capacity of 35 GWh of battery cells. With Tesla now on track to produce 1 million or more electric cars a year next year, it now makes sense to increase gigafactory 1 battery production.