Panasonic Signs Battery Cell Supply Agreement With Lucid

Panasonic has a new multi-year partnership with Lucid to supply lithium-ion battery cells to EV automakers. These components will be used for the upcoming Lucid Air sedan and Gravity SUV.

“This agreement will help us meet the growing demand for lithium-ion batteries as we continue to increase production of the full Lucid Air line in 2023 and look forward to starting production of our Gravity SUV in 2024,” said Peter Rawlinson, the automaker. CEOs and CTOs.

Panasonic’s battery cells will initially come from Japan. Later, the company’s new factory in De Soto, Kansas, will make components for Lucid. Automakers take individual cells and assemble them into packages for vehicles.

A spokesperson for Lucid offered a few additional details “This agreement to purchase battery cells starts in 2023 and runs until 2031,” the spokesperson said.

Panasonic made a breakthrough on Kansas battery factory on Nov. 2. The company is investing $4 billion to build a plant that can produce a 30 gigawatt-hour package annually. That will create around 4,000 jobs. This site makes Type 2170 cylindrical lithium-ion cells which are also made for Tesla in Nevada. Manufacturing at the new location is supposed to start in late March 2025.

Panasonic has plans to further expand its battery production capacity in the United States. The target is to go up from around 50 GWh per year by March 31, 2024, and reach 150 to 200 GWh per year by 2030.

The factory in Kansas was finally able to build the 4680 type cell. This is the type of component that Tesla intends to use battery packs in the future.

Lucid continues to expand Air’s reach. In November, it announced the slightly more premium Touring class and entry-level Pure trims. The entry-level model starts at $92,900 and has an estimated range of 410 miles (660 kilometers), and the better one starts at $107,400 for the 425-mile (684-kilometer) sedan.

There is little info available about Lucid Gravity. A recent preview showed it would be a three-row SUV with room for seven people. The company is still finalizing performance specifications and vehicle design.

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