The current sole Tesla battery supplier Panasonic will double down on the partnership and plans to move its battery operations to the U.S.
Osaka-based Panasonic has been planning to transfer the production of Tesla batteries from an in-house company for automotive and industrial systems to a new U.S.-based unit starting next April.
The move of battery production would be an opportunity to upgrade the Model S and Model X batteries. Model S and Model X 18650 battery cells are made in Japan. The Model 3 2170 cells are slightly more advanced.
Tesla will manufacture all battery modules & packs at China Giga, as we do today in California & Nevada. Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner.
— Elon Musk (@elonmusk) November 2, 2018
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