Panasonic (6752.T) is aiming to develop a new type of higher-capacity battery in about two years, a breakthrough that could significantly extend the driving range of electric vehicles for its key client, Tesla (TSLA.O).
The Japanese company is working on a technology that will eliminate the anode in batteries during the manufacturing stage to increase energy density. Panasonic claims this technology is likely to provide a “world-leading level” of capacity by the end of 2027.
If successful, this improvement would result in a 25% increase in battery capacity. This could boost the driving range of Tesla’s most affordable SUV, the Model Y, by almost 90 miles (about 145 km), assuming the current battery pack size is maintained.
Alternatively, Panasonic could use the technology to create lighter—and potentially cheaper—versions of batteries by shrinking the battery pack size while maintaining the current driving range.
A company executive informed reporters about the anode-free technology ahead of a presentation by Shoichiro Watanabe, the technology chief at Panasonic Energy. It was also noted that multiple global battery producers are pursuing similar technology.
Panasonic’s proposed design has no anode during the manufacturing phase. Instead, a lithium metal anode is formed inside the battery after it is charged for the first time. This frees up space for more active cathode materials—nickel, cobalt, and aluminum—to boost capacity without changing the overall volume. Panasonic also stated that it aims to reduce the proportion of nickel, which is a relatively more expensive material.
It remains unclear whether this technology will help Tesla lower its prices, as Panasonic declined to discuss specific manufacturing costs.
Reuters reported this month that Tesla’s U.S. market share fell to its lowest in nearly eight years in August, as a growing number of rivals and an aging product lineup from Elon Musk’s company led buyers to choose other electric vehicles.
