Panasonic Plans to Quadruple Battery Manufacturing Capacity with Third North American Factory

Panasonic, the Japanese electronics giant, is planning to establish a third electric vehicle (EV) battery factory in North America as part of its strategy to quadruple its battery manufacturing capacity. The company already operates a battery plant in Nevada and is building a new factory in Kansas to supply Tesla at a cost of $4 billion. During Panasonic’s recent annual business strategy briefing with the media, Panasonic Energy chief executive Kazuo Tadanobu said that the company has several candidates in mind for the site but has not yet finalized its plans.

Panasonic’s Expansion Plan

Panasonic is expanding its global battery production and procurement capacity to 200 gigawatt-hours through the fiscal year ending March 2031, a significant increase from the 50 GWh in the last fiscal year ending March 31. The company is also working extensively to improve battery technology. Tadanobu revealed that the energy density of Panasonic’s lithium-ion batteries should increase to 1,000 watts per liters in 2030, up from the 800 watts per liter in 2022. These improvements will be made to the next-generation version of its 2170 cylindrical batteries as well as the 4680 cylindrical batteries that it will produce for Tesla.

Panasonic’s Battery Production in North America

The new factory will be similar in size to the one in Kansas, meaning it should have a capacity of around 30 GWh. In April, The Japan Times revealed that Oklahoma is one of the states being considered with a Panasonic official confirming that the company had concluded a contract with the Oklahoma state government stipulating the terms and subsidies Panasonic could receive if it builds a plant there. The company has not yet finalized its plans but has several candidates in mind for the site.

Panasonic’s Battery Production in Japan

It’s not just North America where Panasonic is increasing battery production. The company intends to begin manufacturing 4680 battery cells at a factory in Wakayama, Japan between April and September next year. These batteries will be shipped to an unnamed customer in North America.

Conclusion

Panasonic is expanding its battery production capacity to meet the increasing demand for EVs. The company is planning to establish a third battery factory in North America, which will be similar in size to the one in Kansas. Panasonic is also working extensively to improve battery technology, with plans to increase the energy density of its lithium-ion batteries to 1,000 watts per liters in 2030. The company is also planning to begin manufacturing 4680 battery cells at a factory in Wakayama, Japan between April and September next year.