Unveiled by the Japanese company in October, the 4680 format (46 millimetres wide and 80 millimetres tall) battery is around five times bigger than those currently supplied to Tesla, meaning the U.S. electric vehicle (EV) maker will be able to lower production costs.
The new powerpack is also expected to improve vehicle range, which could help Tesla lure more drivers to EVs.
Panasonic will build two new production lines at its Wakayama factory in western Japan to build the batteries, the company said in a news release.
The company did not say how much it will spend on the expansion.
The Nikkei newspaper reported earlier that Panasonic planned to invest 80 billion yen ($692 million) in the plant.
(This story corrects to say production will begin be end-March 2024 not 2022)
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