Panasonic Holdings Corp (OTC:PCRFF) (OTC:PCRFY) has completed preparations for the mass production of its high-capacity electric vehicle batteries.
What Happened: The company's energy unit has renovated its plant in Wakayama, Japan, to produce the 4680 cells, which the Tesla Inc (NASDAQ:TSLA) supplier has five times the capacity of its smaller 2170 cylindrical batteries. Samples have been sent to automakers for approval before production begins, reported Reuters on Monday.
Panasonic Energy plans to start production at an annual capacity of several gigawatt hours, CEO Kazuo Tadanobu stated. The Wakayama plant will employ around 400 staff by March 2025 and will serve as a testing site for processes to be used in other factories globally.
The company held a ceremony to mark the completion of preparations and showcased an inspection line with trays of silver-colored cells. Panasonic Energy also produces 2170 and 1860 cylindrical EV batteries at its Suminoe and Kaizuka plants in Japan.
Additionally, Panasonic and Subaru Corp announced plans to establish a plant in Gunma prefecture, north of Tokyo, for automotive battery supply starting in the 2028 business year.
Why It Matters: The move by Panasonic to mass-produce high-capacity EV batteries comes at a crucial time for the electric vehicle market. The demand for more efficient and longer-lasting batteries is increasing as automakers look to enhance the range and performance of their electric vehicles.
In a recent earnings call, Elon Musk, CEO of Tesla, highlighted the competitive threat posed by Chinese automakers. Musk warned that Chinese companies could "demolish" their global counterparts if not for existing trade barriers. This underscores the importance of advancements in battery technology to stay competitive in the global market.
In March, the U.S. and Japan reportedly reached a deal on trading in minerals key to electric vehicle batteries. The trade deal with Japan was an attempt to solve supply chain issues impacting EV manufacturers. Currently, China solely dominates the sector.
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
