Panasonic is aiming to develop a new, higher-capacity battery that could extend the driving range of electric vehicles (EVs).

The company is in the process of removing the anode from the battery during production, which could lead to a "world-leading level" of battery capacity by the end of 2027, reported Reuters.

The Japanese electronics company aims to boost battery capacity by 25%, potentially extending Tesla's Model Y range by around 90 miles (145 km) with the existing battery size.

Panasonic’s new battery could also enable the company to create "lighter" and potentially more affordable batteries by maintaining the current driving range while reducing battery size, according to the news agency’s report.

Ahead of a presentation by Panasonic Energy's technology leader Shoichiro Watanabe, a company executive revealed details about anode-free battery technology.

This method involves generating a lithium metal anode inside the battery after its first charge, allowing for the inclusion of more active cathode materials like cobalt, aluminium, and nickel, thereby increasing capacity without expanding the battery's size.

Additionally, Panasonic plans to lower the nickel content in its batteries, as nickel is one of the priciest components.

However, the company has not disclosed how this technology might affect production costs or whether it could help reduce Tesla's vehicle prices.

The news comes at a time when Tesla's US market share has seen a decline, reaching its lowest point in nearly eight years in August, as consumers opt for EVs from an expanding array of competitors.

In April 2025, Panasonic Energy was chosen as the official battery cell supplier for Harbinger, a US-based medium-duty electric vehicle manufacturer.

The partnership will involve the integration of Panasonic Energy's lithium-ion 2170 batteries into Harbinger's battery systems.