Tesla Inc's battery supplier Panasonic has unveiled a more powerful battery cell that will enter production in the new year and is designed to halve battery costs.
Known as the '4680', as it is 46mm across its diameter and 80mm high, it is larger than the battery cells the Japanese company currently supplies to the US electric vehicle maker.
Tesla told analysts and investors on its earnings call last week that it expects 4680 cells to be incorporated in its vehicles for delivery during 2022.
Panasonic said the new battery cell prototype, which was developed through the "strong desire" of Tesla, has five times the capacity of current cells.
The Japanese company will begin test production of the cells in Japan by March 2022, the head of the battery unit said.
Panasonic and Tesla plan to increase battery production a hundredfold by 2030, but the Japanese company said it had no current plans to make the sort of lithium-iron-phosphate (LFP) batteries that Tesla said last week it was planning a move to.
Drew Baglino, Tesla's powertrain and energy engineering, said on the call last week that testing of 4680 cells has gone well, though he did not clarify if any work had been carried on in the Nevada Gigafactory that the two companies operate together.
“Early next year, from a non-cell perspective, structural, battery, crash, range, and reliability testing are on track to be complete this quarter. Testing to date has gone well, and the Fremont manufacturing line is on track to support,” he said.
Last year, Tesla boss Elon Musk said new battery cells would allow more energy to be carried in the same dimensions, increasing power and range for electric vehicles.