Stellantis, BMW Eye Partnership With Tesla's Japanese Supplier To Establish EV Plants

Stellantis N.V. STLA and Bayerische Motoren Werke AG BMWYY are weighing a collaboration with Panasonic Holdings Corp PCRFF PCRFY to build electric-vehicle battery plants in North America.
Tesla Inc TSLA supplier Panasonic specializing in cylindrical batteries, churned out billions of such cells for its client, the WSJ reports.
Cylindrical batteries can pack more power and are relatively safer. However, their smaller size entails higher costs and the potential for manufacturing defects.
Panasonic and others are working on larger versions of cylindrical batteries that won the attention of car makers, the report cited Ram Chandrasekaran, who, until March, led road-transportation research at Wood Mackenzie.
Recently the Japanese manufacturer has been planning an expansion in the U.S. and working on a more powerful cylindrical cell. Panasonic’s batteries have also drawn the attention of BMW. Also, political tensions have made it difficult for Chinese battery makers to operate in the U.S.
Stellantis has shared plans to establish a third North American EV battery factory during the April-June quarter. Stellantis is talking to Panasonic as a possible partner for the third factory.
BMW shared plans to build six new EV battery plants in Europe, China, and the North American free-trade area, including the U.S., Canada, and Mexico.
Price Action: STLA shares traded lower by 1.43% at $17.92 on the last check Tuesday.