Tesla is attempting to develop its own battery cells, CNBC‘s Lora Kolodny reported, citing five current and recent employees.
The electric-car maker is reportedly creating designs and prototypes for lithium-ion battery cells at what CNBC refers to as a “skunkworks lab” near its Fremont, California, factory. Tesla is also developing the equipment and methods needed to manufacture the cells, according to CNBC.
Panasonic is Tesla’s current battery-cell supplier, making cells at the company’s Gigafactory in Sparks, Nevada, that Tesla assembles into company-designed battery packs. As Tesla has laid off workers and cut costs, Panasonic has reportedly hired former Tesla employees to work at the Gigafactory at an increased rate in recent weeks.
Despite its efforts to make its own battery cells, Tesla is not likely to end its relationship with Panasonic or LG Chem, both of which will supply cells for vehicles produced at Tesla’s Shanghai factory, in the near future, according to CNBC.
The Shanghai factory is under construction and could begin production by the end of this year, Tesla CEO Elon Musk has said.
Tesla and Panasonic did not immediately respond to Business Insider’s requests for comment.
The relationship between Tesla and Panasonic appears to be strained, based on recent comments from each company’s CEO. Musk has said the rate of Panasonic’s battery production has held back Tesla’s ability to make Model 3 sedans. And Panasonic CEO Kazuhiro Tsuga said in May that the company may not make enough battery cells for Tesla in 2020.
According to Bloomberg, Tsuga said Panasonic intended to increase battery-cell production this year before deciding whether it will make further investments.
Musk emphasized the importance of battery production for Tesla during the company’s annual shareholder meeting earlier this month, saying the electric-car maker’s ability to expand its product lineup depends on being able to produce a large number of batteries.
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