Tesla and Panasonic just announced a new agreement that will allow Panasonic to expand its supply of automotive-grade lithium-ion battery cells to the EV manufacturer. The new agreement expands on the companies’ original 2011 arrangement, and it will give Tesla access to almost two billion lithium-ion battery cells for use in the Model S sedan and the upcoming Model X crossover that is slated to go into production at the end of 2014.

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“This expanded agreement with Panasonic is important to Tesla as we continue to increase the pace of production,” said Tesla Co-Founder and CEO Elon Musk. “We look forward to strengthening our relationship with Panasonic, and I’m confident that this partnership will continue to be an integral part of Tesla’s success for years to come.”

It’s being reported that the agreement with Panasonic may generate up to $7 billion in revenue. Tesla is also talking to other battery manufactures like Samsung and LG to evaluate their technology, both of which companies have supplied batteries for the Tesla Roadster. This new agreement between Panasonic and Tesla bolsters concerns that Tesla is gobbling up the world’s Lithium-ion battery supply and ramping up global production.

+ Tesla Motors

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