Panasonic has no plans to build a new battery plant in China for Tesla, Chief Executive Kazuhiro Tsuga said today. Panasonic is struggling to make a profit from the company’s existing battery partnership with Tesla. “At the moment, we don’t have any plans to build a production plant in China for Tesla’s China business,” Mr. Zinga told reporters at a company strategy briefing on Friday. “
Infographic (from: Tesla)
Mr Tsinga’s comments reflect Panasonic’s increasing caution about its battery business with Tesla, which has yet to generate stable profits. Mr Tsukiji admitted earlier this year that he had underestimated the risks of working with Tesla.
Earlier media reports said Tesla was in in advanced talks with South Korea’s LG Chemical to buy batteries for cars made at its Shanghai plant. There are also reports that Tesla has reached a preliminary agreement with the Ninder era to use The Ninder-era batteries in domestic Tesla cars as soon as next year, with a final agreement likely to be signed by the middle of next year. Tesla, however, denies this.