Panasonic finalising choice of U.S. state for battery plant - exec (updated)

Panasonic Energy India

03/06/2022 07:27

(Adds background on new battery, Tesla relationship)
    TOKYO, June 3 (Reuters) - Japan's Panasonic Holdings Corp
 6752.T , which makes batteries for electric car maker Tesla
 TSLA.O , is finalising a decision on which U.S. state it will
choose as the site for a new battery plant, a top executive said
on Friday. 
    "We've been making various considerations, but we are
starting to finalise," said Panasonic Energy Chief Executive
Officer Kazuo Tadanobu, speaking to reporters during a round
table event. No decision had been made yet, he added.
    The Japanese conglomerate is looking at potential factory
sites in Kansas and Oklahoma to supply the batteries to the U.S.
electric automaker's plant in Texas, two people with knowledge
of the plan have said.
    Tadanobu told investors and analysts on Wednesday that the
company had shipped samples of its more powerful '4680' format
electric car battery to Tesla.  urn:newsml:reuters.com:*:nL1N2XO0DY
    The 4680 format battery - 46 millimetres in width and 80
millimetres in height - is about five times bigger than those
that Panasonic currently supplies, meaning the U.S. electric
automaker could be able to lower production costs and boost
vehicles' driving range.
    Panasonic said mass production of the new battery is set to
begin before the end of March 2024 at its plant in Wakayama,
western Japan, before production is moved to North America.
    Panasonic is looking at potential factory sites in Kansas
and Oklahoma to supply the batteries to the U.S. electric
automaker's plant in Texas, two people with knowledge of the
plan have said.
    The Japanese company has partnered with Tesla for more than
a decade, supplying batteries for its first cars.
    Since then, the electric automaker has diversified supply
chain and brought in other firms such as China's Contemporary
Amperex Technology Co (CATL)  300750.SZ  and South Korea's LG
Energy Solution  373220.KS .

 (Reporting by Satoshi Sugiyama; Editing by Kenneth Maxwell)
 ((Satoshi.Sugiyama@thomsonreuters.com;))