Panasonic adds a production line to expand investment in Tesla's lithium battery factory Gigafactory 1?

The relationship between Panasonic and Tesla, which had reached a freezing point more than a year ago, is now showing signs of warming up.

According to foreign technology media Techcrunch, Japan's Panasonic plans to expand its investment in Tesla's electric vehicle lithium battery factory Gigafactory 1 in Nevada, USA, and will add another production line to the factory. This will not only further improve the battery's energy density and storage capacity, but also increase annual production capacity by 10%, from the current 35GWh to 39GWh.

Panasonic is Tesla's largest supplier of lithium batteries for cars. Currently, the company and Tesla have a total of 13 production lines at Gigafactory 1. Techcrunch reported that the new production line is expected to start construction in the next few months and will be put into production soon after the new equipment is installed early next year.

Public data shows that the cooperation between Panasonic and Tesla began in July 2014, when Panasonic invested $4.5 billion to build Gigafactory 1, a lithium-ion battery factory, in Nevada, USA. But more than a year ago, the relationship between Tesla and Panasonic hit a freezing point, which directly affected the expansion plan of Gigafactory 1. On April 11, 2019, due to concerns about the prospects and financial situation of electric vehicles, Panasonic once planned to stop investing in Gigafactory 1.

However, in the past six months, as the demand for electric vehicles has increased, the relationship between the two sides has eased slightly. Analysts pointed out that Panasonic's determination to promote its expansion plan is mainly due to the continued warming of the electric vehicle market.