The Zhitong Finance App learned that after reopening its factory in Wakayama, Japan, Panasonic Holdings is preparing to begin production of its next-generation electric vehicle batteries.

The company said on Monday that the plant, which was previously used to produce battery components, will be Panasonic's main production facility for 4680 cylindrical lithium-ion batteries, and production will begin as soon as the final evaluation is completed, but no specific date was revealed.

Panasonic says the 4680 battery is lighter, more efficient, and less expensive to manufacture than its predecessor, the 2170. This will help improve the range and charging time of electric vehicles while reducing costs.

Panasonic CEO Yuki Kusumi said, “Accumulators are an important resource for the country,” and “we believe these batteries will contribute to the spread of electric vehicles.”

Although global electric vehicle sales growth has been slowing and the popularity of hybrid hybrid vehicles is soaring, most automakers and companies in the supply chain believe they are better off continuing to prepare the automotive industry for an eventual shift to pure electric vehicles.

As a result, as a major supplier to Tesla and a few major Japanese automakers, Panasonic is investing in electric vehicle technology by developing advanced batteries and rebuilding its supply chain, particularly in North America.

Panasonic Energy, the battery division of Panasonic, will jointly invest 463 billion yen (3.2 billion US dollars) with Subaru to build a new battery factory in Gunma Prefecture. The two companies said last week that by the end of 2030, the plant will produce 16 gigawatt-hours, and the batteries produced will be installed on Subaru electric vehicles scheduled to be launched in fiscal year 2028.

The Japanese government also announced a new subsidy of 350 billion yen to Panasonic and other companies last week to invest in the development of solid-state batteries and other electric vehicle technologies.