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Panasonic aims to develop groundbreaking EV battery in about two years

Published by Global Banking & Finance Review

Posted on September 18, 2025

2 min read

· Last updated: January 21, 2026

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Panasonic aims to develop groundbreaking EV battery in about two years
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By Norihiko Shirouzu (Reuters) - Panasonic aims to develop a new type of higher-capacity battery in about two years, potentially extending the driving range of electric vehicles in a groundbreaking

Panasonic Plans Innovative EV Battery Development in Two Years

By Norihiko Shirouzu

(Reuters) - Panasonic aims to develop a new type of higher-capacity battery in about two years, potentially extending the driving range of electric vehicles in a groundbreaking advance for the Tesla supplier.

The Japanese company is working on eliminating the anode in batteries during the manufacturing stage to increase energy density through technology it says is likely to provide a "world-leading level" of capacity by the end of 2027.

If achieved, the improvement would lead to a 25% increase in battery capacity, thus boosting the driving range of Tesla’s most affordable sport-utility vehicle, the Model Y, by almost 90 miles (about 145 km), at current battery pack size, Panasonic said.

Alternatively, Panasonic could also use the technology to make lighter - and potentially cheaper - versions of batteries by keeping the current driving range and shrinking the battery pack size.

A company executive told reporters of the anode-free technology ahead of a presentation on Thursday by Shoichiro Watanabe, the technology chief at the group's battery arm, Panasonic Energy.  

This technology is also being pursued by multiple global battery producers. 

Panasonic's proposed design has no anode at the manufacturing stage. Instead, a lithium metal anode is formed in the battery after being charged for the first time. This would free up room for more active cathode materials — nickel, cobalt and aluminium — to boost capacity without changing the volume. 

Panasonic said it also aims to reduce the proportion of nickel, which is relatively more expensive. 

It was not clear whether the technology would help Tesla to lower prices and Panasonic declined to discuss specifics on manufacturing costs.

Reuters reported this month that Tesla’s U.S. market share dropped to its lowest in almost eight years in August as buyers chose electric vehicles from a growing stable of rivals over the ageing line-up offered by Elon Musk’s company.

(Reporting by Norihiko Shirouzu; Editing by David Dolan and David Goodman)

Key Takeaways

  • Panasonic aims to develop a higher-capacity EV battery in two years.
  • The new battery could extend Tesla Model Y's range by 90 miles.
  • Panasonic is working on anode-free battery technology.
  • The technology could lead to lighter and cheaper batteries.
  • Panasonic plans to reduce the use of expensive nickel.

Frequently Asked Questions

What is Panasonic's goal for EV battery development?
Panasonic aims to develop a new type of higher-capacity battery in about two years, potentially extending the driving range of electric vehicles.
How does Panasonic plan to improve battery capacity?
The company is working on eliminating the anode during manufacturing, which could lead to a 25% increase in battery capacity.
What impact could the new battery technology have on Tesla vehicles?
If successful, the technology could boost the driving range of Tesla’s Model Y by almost 90 miles.
What challenges does Panasonic face with this technology?
It remains unclear whether the new technology will help Tesla lower prices, and Panasonic has not disclosed specifics on manufacturing costs.
Is Panasonic's battery technology unique?
No, this anode-free technology is also being pursued by multiple global battery producers.

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