Tesla supplier Panasonic and Subaru in talks for lithium

Jun 30, 2023

Subaru Corporation and Panasonic Energy Co., Ltd. revealed that they have initiated discussions to establish a medium- to long-term partnership. The purpose of the collaboration is to meet the surging demand for battery electric vehicles and automotive batteries in the rapidly expanding EV segment.

Subaru and Panasonic Energy would hold discussions to explore the possibility of the battery maker supplying the automaker with next-generation automotive cylindrical lithium-ion batteries. As stated in a press release, Subaru would then install the Panasonic batteries to battery electric cars that would be produced in the latter half of the decade.

These vehicles would be produced in sites such as a a dedicated EV plant that is expected to be built in Gunma, Japan.

Subaru is taking strides towards electrification. The company has set a roadmap toward 2050 with the aim of contributing to the realization of a carbon-neutral society. Panasonic Energy, as the automaker’s partner, would help Subaru achieve this goal by supplying the automaker with high-performance cylindrical lithium-ion batteries.

While Panasonic is not the world’s largest battery maker, its cylindrical batteries for electric vehicles are among the best in the industry. Panasonic’s 18650 cells, for example, have been used by Tesla in vehicles such as the original Roadster, but they are still powering the EV maker’s flagship cars today, the Model S Plaid and Model X Plaid.

Panasonic is also arguably one of the industry’s most experienced EV battery suppliers. It is then no surprise that other automakers such as Mazda have also entered discussions with the Japanese firm for potential medium- to long-term battery supply deals. Subaru is not exactly leading the pack with pure electric cars, so a deal with Panasonic would likely help the automaker.

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