TOKYO (Reuters) -Japan's Panasonic Energy will supply cylindrical batteries to Amazon's ( AMZN ) self-driving unit Zoox starting from early 2026 under a multi-year agreement, the Panasonic Holdings ( PCRFF ) unit said on Tuesday.

"Panasonic Energy will deliver its latest 2170 batteries beginning in early 2026 to support Zoox's growing robotaxi service and operations," the company said in a statement.

The cells will initially come from Japan, with plans to expand to Panasonic Energy's Kansas plant, it added. The company also supplies Tesla.

The agreement comes after Zoox started offering free rides for early users in parts of San Francisco last week, amid rising competition in the autonomous ride-hailing sector.

Last month, Panasonic Holdings ( PCRFF ) cut its annual profit outlook on weaker expected earnings at the energy unit as well as lower projected automotive battery sales due to worsening conditions in the U.S. electric-vehicle market.