Panasonic could see huge gain from Tesla contract, become largest supplier for electric cars image

As we reported yesterday, Tesla and Panasonic renegotiated the contract for the Japanese company to deliver Li-Ion cells to the California-based electric car company. For Panasonic, the deal could eventually translate into $7 billion in revenue.

The largest supplier of lithium-ion batteries for auto usage will give 2 billion lithium-ion battery cells to the Palo Alto, California-based automaker in the next four years through 2017, the Osaka-based company said in a statement yesterday.

And if you think that’s not a huge number, because power cells are very small (they can be used in laptops as well), you should think outside the box: according to Chieko Gyobu, a Panasonic spokeswoman, they already supplied Tesla in the past two years around 200 million units.

Now, the company is even mulling the relocation of workers from personal computer and mobile phone divisions into units developing rechargeable batteries for cars and industrial uses. The Tesla contract to supply Model S and Model X cars may add to around $7 billion in sales and clear Panasonic’s position as the largest supplier for electric cars. Panasonic shares were up 3.5 % to 982 yen, en rout to the highest close since July 2011, as of the midday break in Tokyo trading, securing an 88 % gain this year. 

Via Bloomberg