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Market Chatter: Panasonic Holds Off on Mass Production of New Tesla Battery

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Panasonic (TYO:6752) has delayed mass production of its new 4680 electric-vehicle battery again as it awaits approval from a major customer, Nikkei reported Tuesday, citing people familiar with the matter.

Its battery unit, Panasonic Energy, had targeted commercial production by the end of March after saying last year that it was waiting for final customer feedback. The approval has yet to come, according to the report.

The 4680 cylindrical lithium-ion battery, designed to offer higher capacity and longer driving range with fewer cells, was expected to play a central role in Panasonic's EV growth strategy. The company installed two production lines at its Wakayama factory and held an opening ceremony for the site in September, the report said.

Panasonic Energy has an agreement to supply the battery to Tesla and has been seeking additional automaker clients, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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