Tesla is developing its own battery cells

Tesla employees told CNBC that the company is developing its own lithium-ion battery cells as well as the necessary processes to build these cells in large quantities.

The electric vehicle company has been using battery cells from Panasonic for many years, but it appears that Tesla is now looking to reduce its reliance on other companies.

Developing its own battery cells would come with numerous benefits, including the ability to optimise the cells for their own cars while removing the extra cost of sourcing cells through a third party.

Tesla CEO Elon Musk and Panasonic have had some rough patches in their relationship recently.

At one point, Panasonic paused all investment in Tesla’s expansion of its gigafactories, while Musk has also labeled Panasonic as one of the “constraints” affecting Tesla’s production of Model 3 vehicles.

This reported information does not mean that Tesla plans on terminating its relationship with Panasonic any time soon. In the short-term, Tesla would still need to use Panasonic cells while it develops its own.

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Tesla is developing its own battery cells