Tesla plans to spend up to $2 billion on batteries for its cars, the automaker announced on Monday.
Tesla said in a blog post that it will “invest in new batteries to accelerate battery life and extend battery life in our vehicles”.
Tesla’s battery technology is used in the Model 3 and Model S electric cars.
It is currently one of the world’s largest manufacturers of battery packs.
Tesla also announced a series of deals with other companies.
The company said it has signed a deal with Panasonic, a Japanese company that makes high-capacity batteries for electric cars, for 2.8 billion kWh (about 7 billion liters) of storage.
The deal is for lithium ion batteries and is expected to be completed in the second half of 2020.
Tesla will also be investing $600 million to develop lithium ion cells and other cells for the next generation of Tesla’s vehicles.
The company said in its announcement that it is looking to scale its battery manufacturing capacity, particularly for batteries that can handle higher speeds.
“In addition to the battery storage that we are working on, we are looking to grow our lithium ion manufacturing capacity,” Tesla said.
“We will be investing in new plants in California and Nevada to accelerate our deployment of this technology.”
Tesla has a $1.7 billion loan from the National Highway Traffic Safety Administration (NHTSA) that was extended in December 2020.
The loan will allow the company to raise money for Tesla to buy new vehicles and build battery plants.
Tesla expects to start manufacturing batteries in 2018, the company said.
The first production vehicle is expected by 2019, the Tesla Roadster and the Model X, which Tesla is expected start production in 2021.