Not only did Tesla make a profit in the first quarter of 2020, but Panasonic, the company’s battery partner, said on Monday that its battery business was also profitable for the second time,media reported. Now, the Nevada-based Super1 plant is on track to expand. Earlier, Reuters first reported on the possible expansion of the plant’s capacity during Tesla’s first-quarter earnings conference call.
Hirokazu Umeda, Panasonic’s chief financial officer, made it clear that the company was currently in discussions to expand the plant. Although the company is no longer Tesla’s exclusive battery supplier — it has also established a partnership with LG Chemical’s china-based plant — the partnership has flourished in recent years and has been profitable for two quarters.
The overall demand for Tesla motors could help drive the battery business to profitability. Umeda mentioned that the demand exceeds the current capacity of 3.5 million kW/year.
In addition, the executive seems to be suggesting the development of new batteries for Tesla Motors, which has been a hot topic in recent times. Last week, it was reported that the rumoured Tesla “Million Mile Battery” could be unveiled shortly before it goes on sale in China. It is understood that longer-lasting batteries will no longer use cobalt and will be cheaper to produce, which could make electric cars as expensive as petrol-powered cars.