ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Automobiles

Tesla and Panasonic seal 3-year battery supply deal

Agreement covers pricing and investments at Gigafactory in Nevada

The new agreement commits the partners to certain prices and purchase volumes.   © Reuters

OSAKA -- Electric-car maker Tesla and Japanese partner Panasonic have entered into a new three-year agreement on the supply of batteries from the sprawling Gigafactory 1 in the U.S. state of Nevada.

Signed June 10 and announced by Tesla on Tuesday, the agreement sets terms for pricing and requires the U.S. company to purchase a certain amount of batteries from Panasonic in exchange for meeting production capacity commitments over the first two years of the contract period.

The agreement, which came into force retroactively from April 1, also covers "planned investments and new technology," according to Tesla.

The announcement comes after Chinese authorities gave Tesla approval to use a new type of battery in vehicles made at its Gigafactory 3 in Shanghai.

Panasonic Chief Financial Officer Hirokazu Umeda had said in May that the two companies were discussing the possibility of additional investments at Gigafactory 1.

Battery production at the U.S. plant began in 2016, but the relationship between Tesla and Panasonic since then has not been without friction, as the Nikkei Asian Review reported last year.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more