Osaka-based electronics giant Panasonic Holdings Corp. is set to revolutionize electric vehicle (EV) battery technology with the introduction of an upgraded iteration of its 2170 cells, expected to hit production lines as early as this calendar year. Shoichiro Watanabe, Chief Technology Officer for EV batteries, revealed in a recent interview that the revamped cells would be manufactured at the Nevada plant, a facility jointly operated with Tesla Inc., between 2024 and 2025.
Watanabe expressed confidence that Panasonic can fulfill its commitment to quadruple production capacity by the fiscal year 2030 without the necessity for constructing new factories or substantial investments. The company has been diligently working on enhancing the energy density of the 2170 cell, a move that is anticipated not only to boost battery capacity but also to contribute to reducing the overall cost of electric vehicles.
“We will expand battery capacity and improve productivity at the same time,” Watanabe declared, emphasizing the company’s commitment to staying ahead in the global transition from fossil fuels to clean, carbon-neutral energy sources.
Panasonic’s strategic focus extends to North America, with plans to enhance and broaden production in the region, aiming to deliver 200 gigawatt-hours of energy in EV batteries. The company is also actively developing another battery variant, the 4680 cell, characterized by increased thickness and volume.
Contrary to the conventional belief that a 10% increase in manufacturing capacity by the fiscal year 2025 would necessitate new production lines or additional investments, Watanabe asserted that decisions concerning the timing of next-generation EV batteries at the Nevada plant, in partnership with Tesla, will be made collaboratively.
While Panasonic remains discreet about the location of its upcoming plant, Watanabe noted that operating the new facility would require a significant workforce. The company is currently building its second battery plant in North America in Kansas, with plans to unveil the location of a third facility by the end of the fiscal year ending March 2022.
Panasonic has steadfastly invested in EV battery development to align with the global momentum towards sustainable energy sources. In December, the company turned down nearly $700 million in state incentives to establish a manufacturing site in Oklahoma. The decision reflects the complexity of site selection, which takes into account numerous factors without impacting existing operations in Nevada or Kansas.
The strategic move aligns with the Biden administration’s Inflation Reduction Act, offering subsidies for battery cells manufactured in the U.S. This places Panasonic in a favorable position, anticipating a significant boost in operating income by March 2024.
In response to Japan’s efforts to foster a domestic market, Watanabe expressed the ideal scenario of producing batteries domestically. While Panasonic does not manufacture cars, it stands as Japan’s premier battery maker, serving as a major supplier for Subaru Corp., Mazda Motor Corp., and Tesla. The company aims to play a pivotal role in Japan’s commitment to increasing annual lithium-ion battery production capacity to 150 gigawatt-hours by 2030.