Panasonic expects to double sales of EV batteries in three years

Li ion battery 1

The unprecedented demand for the upcoming Model 3 presents major opportunities not only for Tesla, but for its partners. Panasonic, which will be the exclusive supplier of batteries for Model 3, expects its annual sales of automotive batteries to more than double in three years.

Kenji Tamura, the head of Panasonic’s automotive and industrial systems business, told Reuters that he expects annual battery sales to increase from 180 billion yen to 400 billion yen ($3.98 billion) by March 2019. Stationary storage products should add another 100 billion yen.

Tamura also said that Panasonic will accelerate its plans to invest $1.6 billion in Tesla’s Gigafactory in Nevada. Elon Musk said in April that Tesla hopes to boost production to 500,000 cars in 2018, two years earlier than its original target.


SEE ALSO: How Tesla plans to meet its unprecedented new production schedule


Source: Reuters

  • nordlyst

    So in other words Panasonic officially doesn’t believe Tesla’s production goals will even come close to fulfillment?!

    If doubling of sales is in units (number of cells) and we double that, then divide by half a million cars, we get just ~12.5 kWh per car.

    Clearly it’s a revenue increase, not number of units. But still, that means the COST of the packs will be equivalent to about 12.5 kWh of pack today.

    Is this really their expectation? To deliver not the 30% cost reduction there’s been so much talk about, but an 80% reduction?

    How come nobody’s reacted to this?? It’s weird to say the least to see Panasonic and Tesla announced such seemingly incompatible goals for a joint venture!