Panasonic, the Japanese electronics giant, has supported Tesla since its early days in 2007. By 2010, Panasonic invested $30 million for a multi-year collaboration with Tesla developing lithium-ion battery cells for its electric vehicles. More recently, Panasonic announced Gigafactory partnerships with Tesla (in both Nevada and New York) to help produce batteries and solar products.
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Above: Tesla’s Model X is prominently showcased at Panasonic’s booth for this year’s Consumer Electronics Show (Source: Panasonic)
Panasonic doesn’t often comment on its alliance with Tesla. That said, the company revealed a bit more about their collaboration with Tesla at this year’s Consumer Electronics Show (via InsideEVs). And since the companies work together so closely, it’s conceivable that some of Panasonic’s prototype car tech could also foreshadow what’s coming inside of Tesla’s future vehicles. In any event, let’s take a look at what Panasonic revealed at CES this year…
Panasonic’s 2170 lithium-ion battery cells for Tesla
It’s reported that “Panasonic’s lithium-ion battery factory within Tesla’s Gigafactory handles production of 2170-size*1 cylindrical battery cells for Tesla’s energy storage system and its new Model 3 sedan, which began production in July 2017. The high performance cylindrical ‘2170 cell’ was jointly designed and engineered by Tesla and Panasonic to offer the best performance at the lowest production cost in an optimal form factor for both electric vehicles (EVs) and energy products.“
https://www.youtube.com/watch?v=JZjyNVhQPEQ
Above: A look at Pansonic’s 2170 lithium-ion batteries (Youtube: Panasonic Newsroom)
Panasonic’s solar products for Tesla
In addition to batteries, “Panasonic also collaborates with the company [Tesla] in the solar cell business and will begin production of solar cells this summer at its Buffalo, New York, factory. Solar cells produced at this factory are supplied to Tesla. In addition, the solar cells are used in roof tiles sold by Tesla, a product that integrates solar cells with roofing materials. Panasonic will continue its investment in the factory going forward and plans to raise solar cell production capacity to 1 GW by 2019.”
https://www.youtube.com/watch?v=nQaErKsNMNM
Above: More insight into Pansonic’s solar panels and solar roof tiles being produced at Tesla Gigafactory 2 in Buffalo, NY (Youtube: Panasonic Newsroom)
Autonomous Living Space Cabin
Upon reaching Level 5 self-driving capabilities, Panasonic explains tha “The future of mobility lies in fully-autonomous ‘Living Space’ vehicles, where the very act of driving recedes into the background. Travel time [instead] becomes live-your-life time. The car will be transformed into adaptive spaces that meet our needs: a mobile living room, a relaxation zone, and entertainment center—even an office on wheels.” Could Tesla’s car interiors look something like this in the future?
https://www.youtube.com/watch?v=itvfW0U_T5w
Above: How driverless cars could look in the future (Youtube: Panasonic Newsroom)
Scalable e-Powertrain Platforms for EV Bikes and Micro EVs
What if Tesla launches e-bikes and/or smaller electric cars? It’s reported that “The platform Panasonic has developed for EV bikes and micro EVs is an energy-efficient, safe powertrain that features integrated compactness, high efficiency, and flexible scalability. It consists of basic units, including a power unit (with an onboard charger, junction box, inverter and DC-to-DC converter) and a motor unit. The platform will help reduce costs and lead time for vehicle development.”
https://www.youtube.com/watch?v=Jxc7RHdsTko
Above: Panasonic’s scalable “ePowertrain” platform for e-bikes and smaller EVs (Youtube: Panasonic Newsroom)
Moving forward, Panasonic forecasts a strong partnership with Tesla cementing its place in the electric vehicle movement. The company notes, “Panasonic and Tesla are conducting phased investment in the Gigafactory… [and] Panasonic is estimating that global production volume for electric vehicles in fiscal 2026 will see an approximately six-fold increase from fiscal 2017 to over 3 million units. The company will contribute to the realization of a sustainable energy society through the provision of electric vehicle batteries.”
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Note: Article originally published on evannex.com, by Matt Pressman
Source: InsideEVs / Panasonic Newsroom
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.
Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Energy
Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe
The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack.
Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery.
The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system.
New Tesla Megapack Milestone
As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.
To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.
Quick Megafactory Ramp
The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.
Energy
Tesla launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
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