Panasonic to launch new auto battery line at ex-TV screen plant in Japan
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Japan’s Panasonic said on Friday it will start producing automotive batteries at its former television screen plant in Japan, accelerating its battery drive to meet anticipated demand for electric vehicles.
Panasonic, the exclusive battery cell supplier for Tesla’s mass-market Model 3, is reinventing itself as a provider of advanced auto parts to escape the price competition of smartphones and other lower-margin consumer products.
The new battery production will start at its LCD plant in Himeji, western Japan, in the financial year from April 2019, using space left vacant after it closed its unprofitable TV screen manufacturing business last year.
The company declined to comment on the size of new investment or the production capacity of the new line.
The Himeji plant currently produces screens for vehicle dashboards and medical equipment, but output has dropped significantly after it exited TV screen production.
Panasonic sees batteries as a key driver for its plan to nearly double its automotive business revenue to 2.5 trillion yen ($22 billion) in the year through March 2022.
Already one of the leading suppliers of automotive lithium ion batteries, it currently has five production sites in Japan.
It started mass production of battery cells at Tesla’s Gigafactory in Nevada earlier this year and plans to follow suit at a new plant in Dalian, China.
Questions & Answers
Q.Which specific product line will Panasonic's new battery production focus on at the Himeji plant?
Which specific product line will Panasonic's new battery production focus on at the Himeji plant?
Panasonic will be producing automotive batteries at the Himeji plant. This move is intended to help meet the anticipated demand for electric vehicles, aligning with the company's broader strategy for its automotive business.
Q.When is the new battery production line at the Himeji plant expected to begin operations?
When is the new battery production line at the Himeji plant expected to begin operations?
The new battery production line at Panasonic's Himeji plant in western Japan is scheduled to begin operations in the financial year from April 2019. It will utilise space made available after the closure of its TV screen manufacturing business.
Q.What is Panasonic's financial goal for its automotive business, and by when does it aim to achieve it?
What is Panasonic's financial goal for its automotive business, and by when does it aim to achieve it?
Panasonic aims to nearly double its automotive business revenue to 2.5 trillion yen ($22 billion). This ambitious target is set for the year through March 2022, with batteries identified as a key driver for this growth.
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