MZDAF - Panasonic requires 4 more EV battery factories to bolster capacity- report

2023-07-03 07:38:45 ET

Panasonic Energy would have to set up four more factories to meet its target for a sharp increase in annual capacity of batteries for electric vehicles (EVs) by 2031, Reuters reported citing the company's Chief Technology Officer (CTO) Shoichiro Watanabe

Watanabe, executive vice president and CTO of Panasonic Energy, a unit of Panasonic ( OTCPK:PCRFF ) ( OTCPK:PCRFY ), are the Tesla ( TSLA ) supplier's first clear hints of the number of additional facilities it will require.

These indications could also bolster expectations of additional investment by Japanese companies in the U.S., after a deal the two countries signed in March which would be important to broaden access for Japanese producers to U.S. EV tax credits, the report added .

Watanabe, however, did not provide specific locations, time frames or the size of investments.

In May, Panasonic had announced accelerated plans to expand production of EV batteries at a factory in Nevada jointly operated with Tesla. Last year, the company revealed plans for a multibillion-dollar investment in a battery factory in De Soto, Kansas.

Watanabe had shown openness to potential joint ventures for EV battery manufacturing, with automaker Mazda Motor ( OTCPK:MZDAY ) ( OTCPK:MZDAF ) among others, citing the dynamic nature of such projects in which investment is no longer borne by battery makers alone.

In June, Mazda and Panasonic Energy agreed to start discussing a supply partnership for automotive cylindrical lithium-ion batteries aimed at EVs.

The report noted that Panasonic had said it is focusing on North America to bolster up capacity for manufacturing of 4680 batteries, the newest cells liked by Tesla's CEO Elon Musk.

Previously the company noted that it intented to build at least two new factories for 4680 manufaturing in North America by 2030, according to the report.

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