LAS VEGAS—Panasonic Corp. President Kazuhiro Tsuga said the company will spend up to $1.6 billion on an advanced battery factory with electric-car maker Tesla Motors Inc., an investment it hopes to cement its future in automotive electronics.

The Japanese consumer electronics giant and Tesla are jointly funding an up to $5 billion battery plant in Nevada. Panasonic hasn’t previously disclosed the full size of its investment. It will be several years before that factory is humming at full steam, and for Panasonic the wait will...