Tesla supplier Panasonic sees 20% jump in battery density by 2030

As more automakers roll out EV models, investors are looking for evidence that Tesla and established battery suppliers like Panasonic can keep their lead in the industry. The battery system is the most expensive element of an EV and improved performance and lower costs are seen as key to sustaining gains in global sales.

His comments outline for the first time the company's behind-the-scenes work in improving battery efficiency beyond the most cutting-edge battery technology Panasonic has made available for Tesla today. A new larger-format 4680 battery, already being produced by Tesla, is expected to lower production costs and improve range compared to the current-generation 2170 battery, the automaker has said.

Higher voltages allow for increased ability to store energy but even small increases have also tended to drive outsized declines in battery performance. Panasonic’s current battery cell for Tesla uses a voltage of 4.2 volts, and Watanabe said a boost to 4.3 or 4.4 volts was possible with a new mix of additives to the electrolyte, the chemical soup that separates the negative and positive charged electrodes.

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