Panasonic Holdings Corp. is gearing up to meet the booming demand for electric vehicles with its latest move: the mass production of high-capacity EV batteries. The company’s energy unit has completed renovations at its plant in Wakayama, Japan, to produce the 4680 cells. These batteries boast a significant advantage over their predecessors, the 2170 cylindrical batteries, offering five times the capacity.
To ensure a smooth transition to production, Panasonic has already sent samples to automakers for approval. CEO Kazuo Tadanobu has confirmed that production will commence at an annual capacity of several gigawatt hours. The Wakayama plant, expected to employ around 400 staff by March 2025, will act as a testing ground for processes that will be implemented in other factories worldwide.
Panasonic’s commitment to high-capacity EV batteries arrives at a crucial juncture for the electric vehicle market. Automakers are increasingly seeking more efficient and long-lasting batteries to enhance the range and performance of their electric vehicles. This move highlights the growing competition in the EV space, especially with Chinese automakers emerging as strong contenders.
Elon Musk, CEO of Tesla, recently emphasized the threat posed by Chinese companies, warning that they could dominate the global market if existing trade barriers are not maintained. This underscores the importance of advancements in battery technology for remaining competitive in the international arena.
Panasonic’s production expansion also aligns with recent developments in global trade agreements related to EV battery components. In March, the U.S. and Japan reached a trade deal focusing on minerals crucial for EV battery production. This agreement was a response to supply chain challenges faced by EV manufacturers, aiming to address China’s dominant position in the sector.
Panasonic’s efforts to mass-produce high-capacity EV batteries are a significant step towards meeting the growing demand for these crucial components. With increased production and technological advancements, the company aims to play a key role in the future of the electric vehicle industry.
