Tesla's Battery Supplier Panasonic Makes Headway In Europe

According to Financial Times, Panasonic Corporation (OTC: PCRFY) could set up a battery factory for electric vehicles in Norway in an attempt to woo business from European EV makers.

FT quoted Panasonic’s Head of the battery manufacturing unit in the U.S., saying, “Europe is quite a premature market. It is still growing and there’s a lot to happen. It could be colossal.”

What Happened: The Japanese conglomerate has signed a memorandum of understanding for a strategic partnership under the Joint Battery Initiative (JBI) with two Norweigian companies; petroleum refining company Equinor ASA (NYSE: EQNR) and renewable energy company Norsk Hydro ASA (OTC: NHYDY).

The initial goals for the JBI would be to assess the lithium-ion battery market in Europe, the feasibility of an integrated battery value chain, and hosting supply chain partners in one location. Preliminary results for these assessments could be out by mid-2021.

Why Does It Matter: Europe is targeting a net-zero emission in 2050, and electric vehicles have a pivotal role to play, according to the JBI release.

Panasonic Executive Vice President Mototsugu Sato believes that the partnership could be the stepping stone for enhancing Panasonic’s presence among European automakers.

Since Panasonic entered into a four-year agreement with Tesla Inc (NASDAQ: TSLA) back in 2011 to provide lithium-ion battery cells, it has been an integral battery supplier for Tesla in the U.S.

Last month both companies announced plans to build a prototype production line in its Nevada Gigafactory.

A TechCrunch report claimed that South Korean company LG Chem Ltd is Panasonic’s closest rival in the EV battery space.

Price Action: On Tuesday, PCRFY closed 0.66% lower at $10.61, EQNR closed 0.79% higher at $15.39, and NHYDY gained 1.36% to close at $3.72.

Image Courtesy Wikimedia