The technology chief of Panasonic (6752.T)’s battery division told Reuters that four more plants will be needed to meet its 2031 goal of doubling electric vehicle battery capacity.
The Tesla (TSLA.O) supplier’s first unambiguous estimate of the number of different factories it will need is Panasonic Energy’s Shoichiro Watanabe’s statements.
After a March arrangement that expanded Japanese manufacturers’ access to U.S. electric vehicle (E.V.) tax credits, they may encourage additional Japanese investment in the U.S.
Panasonic Energy announced in May that it would quadruple its annual E.V. capacity to 200 gigawatt hours (GWh) by early 2031.
It operates a Nevada facility and is building a Kansas unit to boost yearly capacity to 80 GWh.
“We will need to build around another four factories,” Watanabe, the company’s chief technology officer, said in an interview at its headquarters in Osaka on Friday.
He didn’t specify places, timeframes, or investment amounts.
He expressed openness to cooperative ventures for E.V. battery production with Mazda Motor (7261.T) and others, emphasizing the changing nature of such projects where battery makers no longer invest alone.
He stated, “The style where battery producers will make all investments is disappearing,” adding that 200 GWh capacity was the least needed to be a key participant.
Panasonic is building capacity for Tesla CEO Elon Musk’s 4680 batteries in North America.
By 2030, it plans to develop at least two 4680 facilities in North America. Oklahoma is a possibility.
Watanabe noted that a battery supply chain based on “local production for local consumption” will require approximately a dozen materials suppliers to support the four new plants.
Considering tax advantages under the U.S. Inflation Reduction Act (IRA) and the need to reduce carbon emissions, he suggested joint purchases with key clients.
He added that battery material manufacturers must decide on their strategy early due to the large expenditure needed.
Watanabe said Panasonic would consider a joint battery business with Mazda as part of their supply cooperation.
Last month, the companies stated they would discuss cooperation to supply Mazda with cylindrical lithium-ion batteries from Japan and North America.
This year, they plan to approve it and supply batteries after 2025.
