San Carlos, California – Tesla Motors and Panasonic have announced they will collaborate to develop next-generation battery cells for electric vehicles.

Tesla, the only carmaker producing highway-capable electric vehicles (EV), will use Panasonic’s battery cells in its newest battery packs. The cells are comprised of nickel-based lithium-ion chemistry for high capacity, light weight, durability and long life.

“Our collaboration with Panasonic will accelerate the development of next-generation EV cells, enabling Tesla to further improve our battery pack performance,” said J.B. Straubel, Tesla’s chief technology officer. “Combining Tesla’s rigorous cell testing and understanding of EV requirements with Panasonic’s cutting-edge battery technology will result in custom cells optimized for use in EVs.”

Panasonic is one of the world’s largest producers of lithium-ion battery cells, and a diverse supplier to the global automotive industry.

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