Panasonic Corp is forecasting a more than 200 percent increase in sales of lithium-ion batteries destined for the automotive sector over the next three years.

According to Kenji Tamura, a senior executive in automotive and industrial systems at Panasonic, the company expects automobile-related battery sales to reach $3.98 billion by 2019 as a result of strong demand from partner Tesla Motors Inc.

Panasonic has invested $1.6 billion towards Tesla’s $5 billion “Gigafactory” to ensure that it can supply the automaker with enough batteries for its Model 3 sedan.

In April, Tesla CEO Elon Musk indicated that the company planned to expand its annual production capacity to 500,000 vehicles by 2018.