Tesla is working on new battery cell designs, and a way to make their own cells, with R&D teams in a lab near its car plant in Fremont, California. That plant is where Tesla makes its Model 3, Model S and Model X vehicles today, while its batteries are made at the Gigafactory in Sparks, Nevada, a factory jointly owned and operated with Panasonic.A few days later, Musk blamed Panasonic for dragging down the pace of Model 3 production, saying its cell lines were operating at only two-thirds of their capacity, or 24 GWh, at their shared Gigafactory. We want to hear from you.The ambition to bring at least some battery cell manufacturing in house has been broadly discussed within Tesla and among its followers.Employees in Tesla's battery R&D teams are now focused on designing and prototyping advanced lithium ion battery cells, as well as new equipment and processes that could allow Tesla to produce cells in high volumes, employees and former employees said.At the company's annual shareholder meeting in June, Musk invited Chief Technical Officer JB Straubel and Vice President of Technology Drew Baglino on stage to tell shareholders about battery-related initiatives at Tesla.Even if Tesla's effort to start making battery cells is successful, the company is not likely to cut ties with Panasonic and other battery suppliers any time soon.Straubel said: "It's more obvious now than I think it ever was, we need a large-scale solution to cell production."Tesla employees conduct some of their battery cell manufacturing research at a "skunkworks lab" at the company's Kato Road facility, a few minutes from its car plant in Fremont, California.Tesla and Panasonic did not respond to requests for comment.Baglino added, "We're not sitting idly by.

TOKYO: Panasonic Corp plans to boost the energy density of "2170" battery cells it supplies to Tesla Inc by 20% in five years and commercialize a cobalt … Global Business and Financial News, Stock Quotes, and Market Data and Analysis.Got a confidential news tip? Panasonic said it will stop producing solar cells and modules at Tesla’s factory in Buffalo, N.Y., ending a four-year joint venture with the electric automaker. Tesla announced in 2014 that it signed a deal with Panasonic to bring the battery manufacturer in-house at the Gigafactory, which opened in 2016. SUMINOE, Japan - Tesla officials today visited Panasonic's new Lithium-ion battery cell manufacturing facility in Suminoe, Japan. We're taking all the moves required to be masters of our own destiny here, technologically and otherwise. Panasonic’s pace has been an issue since the Gigafactory opened, and Tesla says demand continues to outstrip supplyThe statement echoes what CEO Elon Musk told investors on a January 30th conference call, when he said that Tesla was “cell-starved for vehicle production,” and that it had to forgo some manufacturing of its home energy products in order to keep pace with Model 3 battery packs. I think through all the experience we've developed with partners and otherwise, we will have solutions for this."Hopping from Tesla to Panasonic at the Gigafactory wasn't as common just a couple of years ago, according to a former Tesla human resources employee who asked to remain unnamed. The two companies believe more batteries can be made using the equipment in place at the factory though, Tesla said. "Tesla won't spend money on more capacity until existing lines get closer to 35GWh theoretical," Musk tweeted.Executives' comments on Tesla battery tech follow reports about tension between the company and Panasonic.Tesla employees familiar with cell supplier negotiations said the company is most likely to work with Panasonic and LG to provide the cells that go into the initial Model 3 vehicles produced in its Shanghai factory. Panasonic Energy Company President Naoto Noguchi presented Tesla Chief Technology Officer JB Straubel with the first production Lithium-ion cells manufactured at the new facility. Compensation, training and a clearer policy around schedules, especially how to earn and get time off, help draw Tesla employees over to their Japanese partner, this person said. The electric car maker isn’t getting enough batteries from the production lines that Panasonic operates in the automaker’s Reno, Nevada Gigafactory to keep up with the number of cars and home energy storage products it wants to make.

And it shows that despite suffering through “production hell” and “delivery logistics hell,” one long-standing problem still steers the Model 3’s success: the tension between what Tesla needs and what Panasonic can deliver.A Tesla spokesperson denied the report that Panasonic plans to “freeze” investment into the Nevada Gigafactory, saying that both companies “continue to invest substantial funds into Gigafactory.” They added that Tesla believes there is “far more output to be gained from improving existing production equipment than was previously estimated.”The supply of batteries made by Panasonic is still the “fundamental constraint” on the production of Tesla products, the company said Thursday.

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