Panasonic is a specialist in producing cylindrical-type battery cells and has been Tesla's main client in this area, but others are now looking to work with it and build plants in North America. According to The Wall Street Journal, Panasonic is in discussions with Stellantis to supply its vehicles with batteries. Stellantis, which owns several brands including Jeep, Chrysler, Ram, and Dodge, has already announced battery plants in Canada and Indiana and is expected to announce the third location soon.
While talks are still at an early stage, BMW may also be pivoting away from working with its Chinese partner as political tensions have led to stricter battery sourcing requirements. The German automaker is interested in using cylindrical cell batteries in future vehicles and wants to build at least one battery facility in Canada, the U.S., or Mexico.
Cylindrical cell batteries, which are most closely associated with Tesla, are being touted as the next step in battery design, with the new 4680 cell being larger, safer, and more energy-dense than other cell geometries. However, it is unclear where the plant will be located, and there are many details to be worked out for the talks between Panasonic and Stellantis to progress further.