Panasonic Energy, a key supplier to Tesla, announced a significant shift in its strategic goals for electric vehicle (EV) battery production and revenue growth. The Osaka-based company revealed on Thursday that it no longer aims to triple its revenue and quadruple its EV battery production capacity by fiscal 2030, citing slower-than-expected demand in the North American market.
CEO Kazuo Tadanobu stated that while Panasonic still aspires to reach its ambitious targets, the company has decided against setting a firm deadline. “Looking at the current market, we decided that rather than be fixated on the [target] number, it’s more important to aim for a decent profit and a certain amount of market share,” Tadanobu explained during a press briefing.
Initially, Panasonic aimed to triple its revenue to over 3 trillion yen ($19 billion) and increase its EV battery production capacity to 200 gigawatt-hours by fiscal 2030, which ends in March 2031. However, the company is now prioritizing profitability and maintaining a robust market share over meeting these specific benchmarks within the original timeframe.
Panasonic’s earlier plans included the potential announcement of a third factory in North America by March 2024, following its joint venture with Tesla in Nevada and a new facility under construction in Kansas. While Tadanobu did not provide new information regarding this potential investment, he assured that Panasonic has evaluated various opportunities and could act quickly if necessary.
Despite the slower growth in the North American EV market, Panasonic remains optimistic about its prospects. To counterbalance the sluggish demand, the company is looking towards Japan as a secondary growth pillar. Panasonic is considering repurposing some of its domestic production lines, originally intended for North American customers, to serve the emerging Japanese market.
In addition, Panasonic is actively in discussions with Mazda Motor and Subaru to supply cylindrical lithium-ion batteries for their EV models. This move indicates Panasonic’s strategic pivot to diversify its customer base and leverage growth opportunities within Japan.
As the global EV market continues to evolve, Panasonic’s adjusted approach reflects a pragmatic response to shifting market dynamics. By focusing on profitability and flexible market strategies, Panasonic aims to sustain its leadership in the competitive EV battery industry while adapting to the changing demands of different regions.
The company’s recalibrated goals underscore the importance of adaptability in the rapidly developing EV sector, positioning Panasonic to navigate future market fluctuations while continuing to support its key partners, including Tesla.
