Tesla and Panasonic are collaborating in a move to create batteries optimized for use in electric vehicles.
In the deal, Tesla will use Panasonic's battery cells in its latest battery packs. The cells feature Nickel-based Lithium ion chemistry and provide the highest energy density today, according to the companies.
Panasonic is also currently in the middle of a 3-year $1 billion investment in lithium-ion battery cell research and development. Panasonic will open a new facility in Suminoe, Japan in April.
The Holy Grail here is to develop a cell optimized for electric vehicles and bring down costs. Tesla has delivered more than 900 cars so far, but has much larger ambitions.