Panasonic Corp. plans to invest in Tesla Motors Inc.’s lithium-ion battery factory, the chief executive of the Japanese electronics company said on Tuesday.
Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric cars and electric vehicle power train components.
Panasonic’s Chief Executive Kazuhiro Tsuga at the annual CEATEC trade show in Chiba said:
Our initial investment amount in the factory will be tens of billions of yen. Our policy is to avoid a situation where Tesla wants to make more cars but doesn’t have enough batteries. We will expand the size as we go by pouring in further instalments of similar amounts.
Panasonic has agreed to produce lithium ion cells for battery packs and will provide funding for the cost of the plant. The company has formed a company in the U.S. to produce batteries for Tesla’s electric car “gigafactory” in Nevada.
Tesla founder, Elon Musk in July said he expects Panasonic to contribute 30%- 40% of the battery factory’s total cost, likely to reach $5 billion.