Panasonic Corporation and Tesla Motors have reached an agreement in which Panasonic will increase its supply of automotive lithium-ion battery cells to Tesla.
The agreement means the two companies will expand their 2011 arrangement and Panasonic will now supply nearly 2 billion cells the next four years, according to a joint press release.
The battery cells supplied by Panasonic will be used to power Tesla's Model S and the upcoming Model X, which is scheduled to go into production by the end of 2014.
"This expanded agreement with Panasonic is important to Tesla as we continue to increase the pace of production," said Tesla Co-Founder and CEO Elon Musk in a statement. "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."
Panasonic and Tesla have developed a next-generation battery cell technology capable of providing "the highest energy density and best performance cells in the market" according to the press release.
Tesla's Model S provides an industry-leading range of 265 miles largely due to Panasonic's cylindrical cell.
"We are extremely proud to be a strategic partner of Tesla," said Yoshihiko Yamada, president of the Automotive & Industrial Systems Company, an internal company of Panasonic. "Panasonic will increase its production capacity of lithium-ion battery cells to supply Tesla's growing needs as it expands its production of EVs."
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