The factory makes the electric Model 3 sedans and Model Y crossovers for domestic and international markets, including Germany and Japan.

Even as it has faced high demand for batteries from Tesla, Panasonic has been slower to build scale compared with rival suppliers LG Energy Solution of South Korea and China’s Contemporary Amperex Technology Co.

Tesla says the battery will store more energy, halve battery costs and drive a 100-fold increase in battery production by 2030.

Tesla sold 70,847 China-made vehicles in December, the highest monthly rate since it started manufacturing in Shanghai in 2019, China Passenger Car Association data showed.

The letter, dated May 1 and addressed to local authorities in Shanghai's Lingang Special Area, outlined the lengths to which the city went to help Tesla, indicating the U.S. automaker's importance to Shanghai.

Tesla is working with suppliers, including partner Panasonic, on a bigger cylindrical battery cell to increase efficiency and reduct cost. In fact, Tesla is already making some of the 4680 cells on its own.

The expansion, if it goes ahead, would give Tesla EV-dedicated production capacity in the world's largest auto market on a par with more established brands in China.

The former Fiat Chrysler CEO is now dead — his plans of automotive conquest equally so — but the logic that motivated his thinking seven years ago keeps repeating itself over and over.

Level 3 vehicles can drive without constant human supervision, but they rely on humans to quickly take over the driving upon request.

Panasonic plans to boost battery density by using a new mix of additives to allow individual cells to run at a higher voltage without damaging battery performance.

J.B. Straubel's broader goal is to move a huge chunk of the battery-component industry from Asia to the U.S., Bloomberg reported. 

While Tesla has led the development of the global EV market, the two giants of automaking are determined to defend their dominance.