Why Did Tesla Partner with Panasonic for Battery Supply?
Tesla's choice to use Panasonic batteries in its vehicles is a strategic decision driven by a deep collaboration, cost savings, and tailored battery design. Panasonic, a long-time supplier since 2009, provides Tesla with a variety of battery types including the 18650, 2170, and 4680 cells. The partnership serves multiple purposes, from ensuring a stable supply of batteries to maximizing efficiency and innovation in battery technology.
Strategic Alignment and Customization
Tesla's partnership with Panasonic is not merely a commercial agreement; it is a strategic alliance that aligns closely with Tesla's goals. Panasonic's cells are designed with Tesla-specific requirements, making them "Tesla cells" tailored to the company's goals. This alignment ensures that battery design, production, and integration are optimized for Tesla's needs, providing better performance and reliability in its vehicles.
Battery Supply Constraints
Despite Tesla's significant capacity to produce battery cells, the company still relies on external suppliers to meet varied product demands. As of early 2024, Tesla faces a shortfall of 12 million cells to produce the desired number of cars and megapacks. This constraint highlights the complexity of Tesla's production planning and highlights the necessity of purchasing additional cells to meet product orders.
Diversifying the Battery Supply Chain
In addition to Panasonic, Tesla is exploring partnerships with other battery manufacturers to diversify its supply chain. For instance, Sila, a California-based company, is collaborating with Panasonic to supply a US-made silicon powder for EV batteries. This innovative material, known as Titan Silicon, has the potential to revolutionize battery energy density and significantly reduce range anxiety. Silicon-based anodes can store up to 10 times more energy than graphite, significantly enhancing battery capacity.
Production Capacity and Future Plans
As Tesla's demand for batteries continues to grow, Panasonic is expanding its production capacity. The company is slated to quadruple its production by 2030, ensuring a steady supply of batteries for Tesla's various products. Additionally, Panasonic is building new battery plants, including a facility in Kansas that will start production next year, further solidifying its position as a reliable supplier for Tesla.
The Current Battery Landscape
According to a study, Panasonic shipped 12 to 15 megapacks from its production building in a 24-hour period, indicating a high demand for its batteries. This production was estimated to support 50 MW of cells each day, suggesting that Tesla's need to produce or buy additional cells is significant. The company sells power walls and integrates a wide range of battery products beyond electric cars, increasing the demand for battery cells.
Conclusion
Given the complexity of battery supply and the need for tailored performance, Tesla's choice to collaborate with Panasonic makes strategic sense. The partnership ensures a reliable, customized supply, while Panasonic's innovation in battery technology continues to support Tesla's mission to advance sustainable transportation. As the market for EVs grows, the relationship between Tesla and Panasonic will likely remain crucial for maintaining supply and driving innovation in battery technology.