Panasonic Holdings is considering providing electric vehicle batteries to Subaru, according to a source on July 28.

According to the report, the two companies will soon announce their intention to sign a basic supply agreement for EV batteries.

Panasonic Holdings' energy division and Mazda Motor announced in June that they would begin discussions to form a battery supply partnership for electric vehicles (EVs).

According to the source, Panasonic, which supplies almost all of Tesla's EV batteries, is looking to expand its global market share as Chinese and South Korean competitors expand their presence.