Why Tesla Partnered with Panasonic: Unraveling the Battery Collaboration
Tesla, being the innovative and forward-thinking company that it is, has chosen to partner with Panasonic for battery production over building everything in-house. This strategic decision reflects a smart business move, given the complexities and costs involved in developing and producing batteries on a large scale. Let's delve deeper into why Tesla chose this partnership and what it means for the future of battery production.
Tesla's Goal-Oriented Battery Design
Tesla has a clear vision for its batteries, and it's evident in the design of the cells it collaborates with Panasonic to produce. The cells are tailored specifically to meet Tesla's unique goals, making them distinctly "Tesla" in nature. This specialized design also explains why Tesla might need to buy batteries for some of its products.
Battery Needs and Capacity: Balancing Supply and Demand
As of early 2024, Tesla's production capacity in terms of battery cells stands at 10 million per month. However, this monthly output is insufficient for the company's diverse product portfolio. Tesla needs 12 million cells just to produce as many cars as possible. Therefore, the company purchases batteries for some of its products. This can include batteries for Megapacks, cars, and other products such as Powerwalls.
A Megapack, a large energy storage system, can utilize 3900KW of batteries. In contrast, a single Tesla Powerwall, which is typically around 10KW, represents a smaller battery footprint. If Tesla needs to produce or buy 50 MW (megawatts) of cells each day, it must acquire what it can't produce itself. This highlights the growing demand and importance of external battery supply for Tesla.
Supply Chain Insights
To understand the scale of Tesla's battery needs, one need look no further than the supply chain. For instance, a person had the opportunity to camp outside the Tesla Megapack production building and count the number of Megapacks leaving the place. Over a 24-hour period, approximately 12 to 15 Megapacks were shipped out, giving some indication of the daily production output.
Panasonic's Role: A Decade-Long Partnership
Panasonic has been a long-time partner of Tesla, dating back to 2009 when the two companies signed their first supply agreement. Panasonic supplies a wide range of battery types, including the 18650, 2170, and 4680 cells. This partnership ensures a consistent supply of high-quality batteries for Tesla. Panasonic is also deeply committed to developing next-generation automotive-grade battery cells, working closely with Tesla to create innovative and more efficient solutions.
Future Innovations: Silicon Powder and Energy Density
One of Panasonic's key initiatives is the development of a higher-performance silicon powder for EV batteries, supplied by the Californian company Sila. Founded in 2011 by Tesla's seventh employee, Sila is developing Titan Silicon, an anode powder composed of micrometer-sized particles of nano-structured silicon. This innovative material replaces traditional graphite in lithium-ion batteries and has the potential to significantly enhance energy density.
Incorporating Titan Silicon into Tesla's batteries could enable 500-mile nonstop trips and enable 10-minute recharges. Silicon stores up to 10 times more energy than graphite, making it a revolutionary breakthrough. This technology could radically change the landscape of EVs, addressing range anxiety and improving overall performance.
Conclusion
Tesla's partnership with Panasonic is a testament to strategic business acumen and innovation. By leveraging Panasonic's expertise and capacity, Tesla can focus on developing its products while ensuring a steady supply of top-tier batteries. As technology continues to advance, the partnership between Tesla and Panasonic is likely to play an increasingly crucial role in shaping the future of electric vehicles and energy storage solutions.