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Panasonic Corp. is gearing up to become a major manufacturer of a new, more powerful battery championed by Tesla Inc. that the electronics maker says meets the demands of its high-flying customer.

Over the past year and a half, Panasonic has been working to develop a bigger “4680” battery it intends to sell to the American electric carmaker. Because of the battery’s larger volume, fewer cells and related parts are needed to power an electric vehicle, leading Tesla Chief Executive Officer Elon Musk to tout the technology as the key to unlocking $25,000 (¥2.9 million) EVs.

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