Tesla, the world’s number one and leading producer of electronic vehicles (EV), has announced that they would enter into a new contract with the world-renowned Japanese multinational giant Panasonic, concerning battery packs, following SEC filing this week
In an article by Electrek, the agreement is one of the EV business movements in its current run to attempt to acquire significant battery cell suppliers to sustain its growth targets in the future. Since last week, Tesla issued a formal SEC filing earlier today stating that the organization has entered into a 2021 price arrangement along with Panasonic.
Tesla-Panasonic Partnership Through The Years
Tesla purchased Panasonic battery cells that the former used for their flagship and built model units, such as the Tesla Model S and Tesla Model X. The partnership between the two firms has been long-standing, with over a decade of Panasonic supplying and supplying their battery cells to Tesla. The Japanese company is one of the rare and small suppliers of batteries that already had a contract with the world’s largest EV business, but there were still several ups and downs along the way in their established trust with each other.
This influenced the two firms’ perception with movements such as Tesla’s effort to establish, build, and produce their own batteries and power sources. It also created some rough edges between the two when Panasonic did not meet their planned output goals and quota set at their Gigafactory in Nevada, USA, and almost sent them a final on their then growing relationship.
Reports confirmed that the two parties could not reach halfway and decided to fix the price for the battery cells that were imported and assembled at the plant. Back then, Tesla had urged the change to lower costs, while Panasonic, on the other side, thought that they were in favour of having their USD 1.6 billion investment in the said factory return its price from the revenue that the EV firm will raise. However, as the arrangement has been legal as of today, it might only go back to what it used to be – corporate partnerships as normal.
Tesla’s Next Steps
Further development on the fact that Tesla has stepped up to build and manufacture its batteries involves the fact that a modern iteration of the battery cell that was explicitly developed by Tesla has yet to be produced and built by Panasonic. And, of course, the latest agreement itself says us all – that part of Tesla’s ongoing desire to achieve its objectives for the EV sector and the business environment as a whole is the protection of battery cells supported by one of the world’s most developed and renowned manufacturers of battery cells.
Some of Tesla’s next steps involve the upcoming launch of their CCS charging adapter production, their confirmed intention to acquire a legacy car producer, and their potential car launches, such as Greenbiz’s Tesla Semi Truck, which is one of the most awaited electric truck releases, and the rumored future European hatchbacks.