Panasonic to spend US$5 billion on EV batteries, software

Sunday, 3 April 2022

Panasonic will invest US$4.9 billion (NZ$7.1 billion) in automotive batteries, supply chain software and other areas the company sees as core to its growth.

The Osaka-based manufacturer will invest US$3.3 billion (NZ$4.7 billion) in growth segments including electric-vehicle cells, and another US$1.65 billion (NZ$2.4 billion) in technology such as hydrogen devices over three years through fiscal 2024, according to a statement Friday. Panasonic is also targeting an accumulated operating profit of $12.4 billion (NZ$17.9 billion) over the period.

Panasonic, a sprawling 104-year-old Japanese company that used to top global consumer electronics sales, is seeking new avenues for growth. The company's previous CEO Kazuhiro Tsuga spent close to nine years shedding struggling businesses, such as plasma TVs, before handing the reins to Yuki Kusumi a year ago.

Kusumi, head of a leaner company that's no longer bleeding red ink, is now faced with the challenge of steering Panasonic onto a path of sustained growth. He spent the past year shaping it into a holding company, which the CEO says will make it easier to decide where to invest for long-term growth.

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When looking to define areas of growth, Panasonic 'considered what society will look like in 2030 and back-cast from there,' Kusumi said in a briefing.

One of those areas of growth is Panasonic's business supplying batteries for EVs. The manufacturer is in talks over a site for a factory in the U.S. where it plans to build next-generation 4680 batteries for Tesla and potentially other automakers. The multibillion-dollar plant could begin operating as soon as 2024, Bloomberg News reported.