Panasonic, Tesla rekindle romance, strike supply agreement for Model S batteries

Panasonic and Tesla renewed their corporate wedding vows yesterday, with a new supply agreement on lithium-ion batteries. Under the accord, Panasonic will provide Tesla with cells for some 80,000 cars over the next four years, effectively ensuring that the manufacturer will meet its ramped-up production targets for 2012 -- including more than 6,000 orders for its Model S EV. As for the batteries themselves, they'll be made using Panasonic's nickel-type cathode technology, which, according to the company, will offer the highest energy density known. Of course, we're still awaiting for the Model S to actually enter full production, but you can whet your electric appetite with Panasonic's full press release, available after the break.