Panasonic Energy plans to construct four additional battery factories by 2031 to increase electric vehicle battery production capacity.
The target capacity is set at 200 gigawatt hours (GWh).
The company is exploring joint ventures and supply partnerships to share investments and optimize the battery production chain.
Panasonic Energy Reveals Plan to Construct Four More Factories to Significantly Increase Electric Vehicle Battery Capacity by 2031.
Panasonic plans to expand its electric vehicle battery production capacity by building four more factories; Photo: Panasonic
Shoichiro Watanabe, Chief Technology Officer of Panasonic Energy, has stated that the company will need to build four additional factories to achieve its target of a sharp boost in annual capacity for electric vehicle batteries by 2031. This is the first clear indication from the Tesla supplier regarding the number of extra factories required.
These comments could also generate expectations of increased investment by Japanese companies in the United States, following a March agreement between the two countries that facilitates broader access for Japanese manufacturers to U.S. electric vehicle (EV) tax credits.
In May, Panasonic Energy announced its aim to raise annual EV capacity to 200 gigawatt hours (GWh) by early 2031, approximately four times its capacity as of March this year.
With a current plant in Nevada and a second one under construction in Kansas, expected to reach an annual capacity of 80 GWh, Panasonic is actively expanding its manufacturing capabilities.
"We will need to build around another four factories," said Watanabe during an interview at the company's headquarters in Osaka on Friday. However, he did not disclose specific locations, timelines, or investment sizes.
Watanabe expressed openness to potential joint ventures for EV battery production, including collaborations with automaker Mazda Motor, highlighting the evolving nature of such projects where investment is no longer solely borne by battery manufacturers.
"The style where battery producers will make all investments is disappearing," he remarked, emphasizing that achieving a capacity of 200 GWh is crucial to become a major player in the industry.
NORTH AMERICA
Panasonic has stated its focus on North America to expand its capacity for the production of 4680 batteries, the latest cells championed by Tesla's CEO, Elon Musk.
Previously, the company announced plans to build at least two new factories for 4680 battery production in North America by 2030, with Oklahoma being considered as a potential site.
The construction of the four new plants will require support from around a dozen material suppliers' factories, forming a battery supply chain based on the principle of "local production for local consumption."
Joint procurement with major customers will also be considered, taking into account tax incentives provided by the U.S. Inflation Reduction Act (IRA) and the need to minimize the carbon footprint.
Given the significant investment required, material manufacturers involved in battery production will also need to make early decisions regarding their plans, according to Watanabe.
Panasonic does not rule out the possibility of a joint battery venture with Mazda as part of an ongoing supply partnership between the companies. Last month, they announced their intention to collaborate in supplying Mazda with cylindrical lithium-ion batteries produced in Japan and North America. The partnership is expected to be finalized this year, with battery supply commencing after 2025.
