TESLA INKS THREE-YEAR DEAL WITH BATTERY CELL MAKER PANASONIC

Tesla Inc. has signed a three-year pricing deal with Japan’s Panasonic Corp. relating to the manufacture and supply of lithium-ion battery cells at the Gigafactory in Nevada, the electric carmaker disclosed in a filing on Tuesday (Wednesday, June 17, 2020 in Manila).

Tesla and Panasonic have been reported to be in talks to expand the battery joint venture’s capacity, Ankit Ajmera wrote for Reuters. Panasonic hinted in May that it was working to develop new batteries with Tesla, possibly with higher capacity.

The company said the deal, signed last week and effective April 1, 2020, sets the terms for production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the agreement.

Tesla also amended the general terms and conditions of its partnership with Panasonic, modifying the term to expire 10 years after Panasonic achieves certain manufacturing milestones. Panasonic is no longer Tesla’s exclusive battery supplier, but has been able to turn around the US joint battery business as demand for Tesla’s electric cars soar.