Panasonic To Introduce Bigger EV Battery To Diversify Business From Tesla: FT

In an effort to diversify its business from Tesla Inc TSLA, Panasonic Holdings PCRFY will roll out a bigger electric vehicle battery as the Company works to focus direction after a period of aggressive streamlining.
Yuki Kusumi, Panasonic's CEO, said that the Company would invest ¥600 billion ($4.8 billion) over the next three years, with two-thirds earmarked for EV batteries, supply chain software, and air conditioners, reports Financial Times.
The Company plans to introduce two production lines for the battery, which has a fivefold energy capacity compared with the current ones.
Tesla's CEO Elon Musk has said the 4680, which is not scheduled for mass production until next year, will help bring down the price of a Tesla car to about $25,000.
Tesla's Model 3 starts at about $41,000.
For Panasonic, the battery represents an opportunity to diversify its client base from Tesla. "If the 4680 is second to none in terms of performance and cost, manufacturers other than Tesla will eventually adopt it," said Kusumi.
Kusumi's plans reflect Panasonic's desire to return to robust growth after aggressive streamlining under former president Kazuhiro Tsuga, who spent years shedding underperforming business lines, including the Company's famous plasma TVs.
The remaining ¥200 billion for the next three years will be used for technology, including hydrogen energy.