top of page
tech360.tv

Panasonic Takes the Lead in Japan's EV Battery Revival Plan with Bold U.S. Expansion

Panasonic invests $4 billion in a battery factory in De Soto, Kansas, to revive Japan's EV battery industry. The company plans to quadruple its EV battery capacity to 200 gigawatt-hours annually by 2031. Panasonic aims to maintain its technological edge and gain a competitive advantage over Chinese rivals in the U.S. market.

Panasonic Energy, a renowned Japanese manufacturer of batteries for electric vehicles (EVs) and a key supplier to Tesla, is spearheading Japan's comeback in the EV battery industry. The company is investing approximately $4 billion in a massive factory in De Soto, Kansas, which is set to create 4,000 direct jobs and boost the local economy. This move marks Panasonic's determination to regain its former glory as the world's largest producer of electrified vehicle batteries.


In the 1990s and early 2000s, Japan led the world in lithium-ion battery technology, thanks to the groundbreaking research of Japanese Nobel laureate Akira Yoshino. Companies like Panasonic, Sony, and NEC emerged as global leaders. However, fierce competition from China and skepticism from Japanese automakers, such as Toyota, caused Japan's battery industry to lose ground. Today, Panasonic ranks fourth globally in terms of electrified vehicle battery shipments, trailing behind China's CATL and BYD, as well as South Korea's LG Energy Solution.


To reclaim its prominence, Panasonic is adopting a bold strategy. Breaking away from its cautious approach to EV battery investments, the company plans to use the De Soto gigafactory as a springboard for a global resurgence. By 2031, Panasonic aims to quadruple its EV battery capacity to 200 gigawatt-hours annually, primarily in North America. This ambitious plan could involve the establishment of multiple factories on a scale similar to the one in De Soto.


The United States, as the world's second-largest auto market, plays a crucial role in Panasonic's ambitions. Japanese companies enjoy a significant advantage over their Chinese counterparts in the U.S. due to access to tax credits provided by the 2022 Inflation Reduction Act. These credits, aimed at developing a domestic EV supply chain, are estimated to contribute 110 billion yen ($760 million) to Panasonic Holdings' net income in the fiscal year through March.


The De Soto Plant will be Panasonic's second battery factory in the U.S., solidifying its position as Tesla's largest supplier. With an annual production capacity of 30 gigawatt-hours, equivalent to approximately 550,000 units of Tesla's popular Model 3, the plant will not only cater to Tesla but also supply other customers.


While the demand for EVs in the U.S. has been slower than anticipated, Japanese battery manufacturers recognize the importance of investing in this growing market. They are determined to avoid a repeat of the semiconductor industry's collapse, where Japanese companies lost their leadership position to Taiwanese and South Korean competitors. Panasonic sees this as its last chance to maintain its technological edge in batteries and views the U.S. market as a strategic advantage over Chinese rivals.


Panasonic's bold move is not unique. Other Japanese companies, including Toyota and AESC Group, are also ramping up their investments in battery factories in the U.S. South Korean competitors, such as LG Energy Solution and SK Innovation, are not resting on their laurels either, with plans to build multiple factories in partnership with major automakers.


The EV battery market is becoming increasingly crowded, but Japanese companies view this as an opportunity rather than a threat. They are confident in their advanced battery technology and production capabilities. The race is on to secure partnerships and investments from automakers worldwide.

 
  • Panasonic invests $4 billion in a battery factory in De Soto, Kansas, to revive Japan's EV battery industry.

  • The company plans to quadruple its EV battery capacity to 200 gigawatt-hours annually by 2031.

  • Panasonic aims to maintain its technological edge and gain a competitive advantage over Chinese rivals in the U.S. market.


Source: NIKKEI ASIA


As technology advances and has a greater impact on our lives than ever before, being informed is the only way to keep up.  Through our product reviews and news articles, we want to be able to aid our readers in doing so. All of our reviews are carefully written, offer unique insights and critiques, and provide trustworthy recommendations. Our news stories are sourced from trustworthy sources, fact-checked by our team, and presented with the help of AI to make them easier to comprehend for our readers. If you notice any errors in our product reviews or news stories, please email us at editorial@tech360.tv.  Your input will be important in ensuring that our articles are accurate for all of our readers.

bottom of page