Core supplier Panasonic is developing new technology for Tesla, Inc. (TSLA.US), and the battery is expected to reduce costs and increase range.

Tesla, Inc. battery supplier Panasonic Corporation plans to develop a higher capacity electric vehicle battery in about two years, with the goal of completing the research and development by the end of 2027. According to reports, the Japanese company has stated that if this goal is achieved, the range of Tesla, Inc.'s most affordable SUV, the Model Y, could be increased by nearly 90 miles with the current battery pack capacity unchanged; or, by maintaining the existing range and reducing the size of the battery pack, Panasonic may be able to use this technology to manufacture a lighter and potentially lower cost battery version. This is a groundbreaking development for this Tesla, Inc. supplier. The innovation lies in eliminating the anode component in the manufacturing process and allowing the battery to form a lithium metal anode after the initial charge.