$704 million investment from Panasonic to Tesla

Japanese technology giant Panasonic will invest $704 million in the production of special high-capacity lithium-ion batteries for electric car company Tesla. It is reported that the mass production of the batteries will start in Wakayama in 2023, while the new generation batteries are expected to increase the range of electric vehicles by 15 percent.

Batteries are estimated to account for 30 percent of the cost of electric vehicles. Reducing costs is expected to accelerate the transition to electric vehicles. The longer range means drivers won't need to recharge batteries as often as before.

It has been announced that Panasonic, a long-time partner of Tesla, has invested approximately $704 million to produce the new 4680 model batteries. The company is planning to expand its existing facilities instead of establishing a new facility.

As it will be remembered, Tesla CEO Elon Musk announced that although his company plans to produce its own batteries, it will continue to supply them from other manufacturers and suppliers.