Panasonic to continue with a normal supply of Huawei technologies after previously stating that it will stop shipments of components to Huawei.
The announcement comes after mobile carriers in Japan and Britain announced they would postpone the release of Huawei smartphones.
Tesla's rift with Panasonic began with reports that expansion plans for a jointly operated battery plant are being tempered with.
Panasonic didn’t immediately respond to a request for comment outside normal business hours.
Due to high demand for Tesla's electric cars, Tesla and Panasonic are planning on their gigafactory expansion to which millions have been plunged into the last few years.
Panasonic forecast an operating profit of 385 billion yen (US$3.51 billion) for the year ending March, down from the previously predicted 425 billion yen.
A Toyota spokesman said the two companies have been working on the battery partnership announced in 2017.
Net profit fell 4.5% on-year to 113.6 billion yen (US$1 billion) in the six months to September at the Osaka-based company, which supplies battery cells to Tesla.
The company's monthly capacity of NCA cathode materials is due to reach 4,550 tonnes later this year, more than five times the monthly output of 850 tonnes in 2014.
Panasonic has already reduced cobalt content to about 10%.
The investment would come on top of the $1.6 billion Panasonic is contributing to the automotive battery plant.
Panasonic is the exclusive battery cell supplier for Tesla's current production models, producing them in Japan as well as at Tesla's so-called Gigafactory in the U.S. state of Nevada, which Panasonic jointly operates.
Panasonic Corp expects to more than triple its cobalt consumption in five years' time, industry sources said, even as the company aims to develop cobalt-free automotive batteries in the near future.
Panasonic produces lithium-ion batteries for Tesla in a joint venture with the California-based electric car maker.
The Guardian, which exposed abuses by contractors along the supply chain of these firms last year, reports that rights groups want more concrete measures.
Wakil rakyat DAP itu dan MTUC menggesa kerajaan menguatkuasakan undang-undang sedia ada terhadap pihak yang mengeksploitasi pekerja asing.
The DAP lawmaker and MTUC call on government to enforce existing laws against those who exploit migrant workers.
UK daily The Guardian claims migrant factory workers forced to work 14-hour shifts to repay money to recruitment agents in Nepal.
Pekerja kilang asing mendakwa mereka tiada pilihan kecuali meneruskan pekerjaan bagi membayar hutang, walaupun mereka hanya dibayar RM700, separuh daripada gaji minimum ditetapkan Putrajaya.