Panasonic Holdings has designated Japan as a pivotal market for its electric vehicle (EV) battery segment, signaling a strategic diversification from its robust U.S. presence. This shift comes in response to burgeoning demand in Japan and a maturing EV market in the U.S. and Europe, where growth has tempered due to high vehicle prices and infrastructural gaps. Panasonic’s Chief Financial Officer, Hirokazu Umeda, highlighted the company’s ongoing commitment to the U.S. while emphasizing the future potential of the Japanese market during a recent financial briefing.
Historically focused on North America, especially as a key supplier to Tesla, Panasonic is now navigating a market slowdown characterized by a 9% drop in Tesla’s revenue in the first quarter, amidst cooling demand in China and other regions. Concurrently, Panasonic is advancing negotiations to supply lithium-ion batteries to Mazda Motor and Subaru, with expectations to see its batteries in vehicles from these automakers by the latter half of this decade.
The strategy adjustment coincides with Panasonic’s report of a record net profit of 443 billion yen ($2.8 billion) for the fiscal year ending in March, bolstered by U.S. government subsidies. Despite a forecast of slowed battery market growth due to early adopter market saturation, Panasonic remains optimistic about its high-end lithium-ion batteries’ reception in both the U.S. and Japan, as stated by Umeda.
Further solidifying its strategic pivot, Panasonic Energy aims to commence mass production of advanced EV batteries by September, likely to support Tesla’s supply chain. These developments underscore Panasonic’s adaptive strategies amidst changing market dynamics and its emphasis on leveraging both established and emerging regional opportunities.
