Tesla Inc battery maker Panasonic Holdings on Tuesday reported it had concluded an arrangement to supply lithium-ion batteries to electrical motor vehicle (EV) maker Lucid Group as the Japanese enterprise seeks to increase its purchaser.

“Partnerships with engineering-foremost EV ¬†manufacturers these types of as Lucid are critical to our mission,” Kazuo Tadanobu, the head of Panasonic’s electricity company said in a press release.

Virtually all of Panasonic’s automotive battery output at present goes to Tesla as the major U.S. EV makers speedily expands output. Whilst Panasonic, which programs to create a new $4 billion battery plant in Kansas, is benefiting from that ballooning demand, officials at the Japanese corporation are also cautious about relying to seriously on a person purchaser.

Lucid will use Panasonic batteries in its prolonged-range Lucid Air and its Gravity SUV, which will begin generation in 2024, the company stated.

In August Lucid halved its EV output forecast blaming remarkable source chain and logistics challenges. The firm, which claims it has 37,000 reservations, now expects to generate in between 6,000 and 7,000 luxurious electric cars this 12 months.