Panasonic, a major Tesla Inc. supplier, is working on new technology to increase battery energy density by a fifth by 2030, the Japanese company's chief technology officer, Shoichiro Watanabe, told Reuters.
That gain, if achieved, could boost the driving range of a Model Y, for example, by more than 60 miles with the same size battery pack.
Alternatively, it could allow manufacturers to create roomier and possibly lighter EVs while keeping driving range unchanged.
As more automakers roll out EV models, investors are looking for evidence that Tesla and established battery suppliers such as Panasonic can keep their lead in the industry.
The battery system is the most expensive element of an EV and improved performance and lower costs are seen as key to sustaining gains in global sales.