Each Tesla electric vehicle’s (EVs) battery pack is being replaced with a new, larger battery, and Panasonic is planning to mass-produce them by March 2024.

In 2020, Tesla unveiled its next-generation battery technology, claiming that the new 4680 battery will enable a $25,000 electric car. The new battery is now in production, with Electrek reporting earlier this month that Tesla has built a million of them. Panasonic is now joining in on the game.

Panasonic has stated that mass manufacturing of 4680 batteries will commence by the end of March 2024, according to Reuters. To do so, the Japanese corporation will construct two additional production lines at its existing Wakayama factory in the Kansai region, with a planned investment of roughly $692 million.

This year, the Model Y is scheduled to be the first electric vehicle to ship with the updated batteries and structural battery pack.

The larger 4680 battery, which is named after its 46-by-80mm dimensions, Tesla claims, has five times the energy storage capacity, allowing for a 16 percent boost in range and a six-fold increase in power.

Meanwhile, it is projected to cut battery production costs by half. This should lower the cost of electric vehicles, not just because of the lower cost, but also because fewer batteries are needed to meet minimum range objectives.