Panasonic Energy Eyes Expansion With Four New Factories For EV Battery Manufacturing: Report

Panasonic Holdings Corp PCRFY Panasonic Energy, for the first time, emphasized the need to build around four more factories to sharply boost the annual capacity of batteries for electric vehicles by 2031.

Panasonic Energy head of technology Shoichiro Watanabe also signaled an openness to potential joint ventures for EV battery production - including with automaker Mazda Motor Corp MZDAY, Reuters cites an interview.

Also Read: Stellantis, BMW Eye Partnership With Tesla's Japanese Supplier To Establish EV Plants

The 200 GWh capacity is the minimum necessary to be a significant player in the space, Watanabe said.

The Tesla, Inc TSLA supplier executive's remark could also fuel expectations of more investment by Japanese companies into the U.S. after Washington and Tokyo struck a deal in March giving Japanese manufacturers more comprehensive access to U.S. electric vehicle (EV) tax credits.

Panasonic Energy had shared plans to boost annual EV capacity to 200-gigawatt hours (GWh) by early 2031, around four times greater than its capacity in March this year. 

It has a plant in Nevada and is building a second one in Kansas that, once operational, will likely bring annual capacity to 80 GWh.

Price Action: PCRFY shares closed higher by 2.17% at $12.24 on Friday.