Panasonic Holdings plans to more than double its domestic production of electric vehicle (EV) batteries by 2030, targeting new customers such as Mazda and Subaru. This strategic move is aimed at enhancing the performance of its Japanese factory amid fluctuating demand from key client Tesla.
President and CEO Yuki Kusumi, in a Tuesday interview, highlighted the company’s future goals: “We are estimating our target for 2030 based on our demand from [potential] customers.” He acknowledged the challenge of profitability in the automobile battery sector, noting a significant drop in demand for batteries used in specific models.
Currently, Panasonic’s domestic EV battery production capacity stands at approximately 12 gigawatt-hours (GWh) annually, compared to around 38 GWh in the United States. To meet the increased demand, Kusumi indicated that some production lines in Japan might be modified to produce more advanced batteries sought by automakers.
The company is actively negotiating with Mazda Motor and Subaru to supply its cylindrical lithium-ion batteries for their EVs. These partnerships are part of Panasonic’s broader strategy to diversify its client base and reduce reliance on Tesla, which has recently led to reduced output at Panasonic’s EV battery factory in Japan.
Kusumi also emphasized the need for internal improvements, pointing to a lack of “urgency” and “strict execution” in achieving profitability targets. Panasonic is likely to miss its key financial goals, including a 10% return on equity and a ¥1.5 trillion cumulative operating profit by March 2025.
In response, Panasonic has decided to sell its car parts subsidiary to a U.S. asset management company and is considering other restructuring measures. Kusumi clarified, “Selling businesses is not our goal.” Instead, the company plans to assess the profitability of each business division, potentially changing managers or reallocating staff to more promising areas.
As Panasonic moves forward with its expansion and restructuring efforts, the company aims to strengthen its position in the EV battery market and achieve sustainable growth by 2030.
