Electric carmaker Tesla Motors has entered into an agreement with Panasonic in which Panasonic will expand its supply of automotive-grade lithium-ion battery cells to Tesla.
As a part of this agreement, Panasonic will supply nearly 2 billion cells over the course of four years. Both companies have extended their agreement reached in 2011.
Tesla will use these lithium-ion battery cells to power its Model S and Model X. The company will start the production of Model X performance utility vehicle by the end of 2014.
Tesla co-founder and CEO Elon Musk said that this expanded agreement with Panasonic is important to Tesla as they continue to increase the pace of production.
"We look forward to strengthening our relationship with Panasonic, and I'm confident that this partnership will continue to be an integral part of Tesla's success for years to come," Musk added.
Automotive & Industrial Systems, an internal company of Panasonic, president Yoshihiko Yamada said: "Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla's growing needs as it expands its production of EVs."
Panasonic and Tesla have partnered to develop a next-generation battery cell technology that offers high energy density and best performance cells in the market. Panasonic's cylindrical cell is a customized technology aimed at optimizing electric vehicle quality and life. These cells are integrated by Tesla into the battery pack in a way that enables an industry-leading range of approximately 265 miles for the Model S.
