TOKYO — Japanese electronics and battery giant Panasonic, a key supplier to Tesla Inc., is planning a massive ramp-up to quadruple its battery manufacturing capacity and boost the energy density of its battery by 25 percent by the end of the decade as it readies for the electric vehicle age.
As part of the expansion, Panasonic said it will announce a third North American battery production site by March 2024. That site will follow the last year's selection of De Soto, Kan., as the home of a $4 billion battery factory that will supply Tesla. Panasonic also has a plant in Nevada.
Through the fiscal year ending March 2031, Panasonic will expand its global battery production and procurement capacity to 200 gigawatt-hours, up from 50 GWh in the fiscal year ended March 31, 2023. The investment will feed a near quadrupling of battery revenue to 2.5 trillion yen ($17.9 billion) in the period as EV sales take off, Panasonic Energy CEO Kazuo Tadanobu predicted.
"In order to respond to quickly growing EV demand," he said, "we will be increasing capacity."