Japanese battery giant Panasonic Energy disclosed its significant need for additional four battery production plants to support its goal of accelerating annual power battery capacity by 2031, Reuters reports citing a company executive.
Panasonic Energy’s Chief Technology Officer Shoichiro Watanabe’s intriguing remarks through the global news agency signify the company’s first explicit declaration of the number of additional facilities required to achieve its objectives.
Panasonic’s battery capacity targets
Panasonic Energy recently announced its goals to improve annual EV battery capacity to 200 gigawatt hours (GWh) by early 2031. This ambitious target indicates a fourfold capacity increase as of March 2023.
Notably, the company currently operates a battery factory in Nevada. Meanwhile, its second plant in Kansas is still under construction, with an estimated annual capacity of 80 GWh. However, it turns out that these factories are not yet enough.
“We will need to build around another four factories.”
Shoichiro Watanabe, Panasonic Energy’s Chief Technology Officer
Watanabe omitted to share details about specific locations, timeframes, and investment worth. Nonetheless, his comments suggest potential joint ventures for EV battery production, including with automaker Mazda Motor.
Panasonic to focus on the North American market
Watanabe noted the changing backdrop of battery production ventures, saying that battery companies no longer need to fully carry all the investment duties.
“The style where battery producers will make all investments is disappearing.”
Shoichiro Watanabe, Panasonic Energy’s Chief Technology Officer
He further contended that its 200 GWh annual capacity target was now the minimum output necessary to be a major player in the industry.
Unsurprisingly, the Japanese tech giant now specifically eyes North America for its expansion efforts. Panasonic aims to produce the Musk-promoted 4680 battery cells in the region, with plans to build at least two new battery factories in the region by 2030. Interestingly, Oklahoma is reportedly a strong location candidate.
Need for a supporting supply chain
Panasonic’s potential development of four more battery factories will require support from multiple material suppliers.
Watanabe noted that “local production for local consumption” is crucial, hinting at a possible joint procurement agreement with primary customers.
In addition, Watanabe also disclosed that Panasonic is considering a potential joint battery venture with Mazda under a supply partnership they are currently negotiating.
As EV-a2z previously reported, the companies are discussing a partnership to supply Mazda with cylindrical li-ion batteries manufactured in Japan and North America. The partnership is expected to be finalized this year, with battery supplies anticipated to commence after 2025.
See Also:
- Panasonic, Mazda to partner for EV cylindrical li-ion batteries
- Panasonic to expand battery output at Tesla’s Gigafactory Nevada
- Tesla-Panasonic tandem secures around $1.8B in US tax credits in 2023
- Turner-Yates joint venture secured a contract to construct Panasonic’s new EV battery plant in the US
- Japanese tech giant Panasonic cuts FY outlook, to focus on 2170 and 4680 batteries for profitability
Panasonic’s intensified focus on North America will undoubtedly boost the region’s sustainability goals. It will also aid Tesla in ramping up its production efforts for the EVs it plans to equip with the 4680 battery cell.
