Panasonic To Increase Battery Cell Production In U.S., Asia

2 weeks ago by Steven Loveday 13

Panasonic

Tesla (Panasonic) Gigafactory – August 17, 2017, by California Phantom

Panasonic’s plan to increase global battery production is threefold.

Those familiar with Tesla will immediately associate Panasonic with the Tesla Gigafactory near Reno, Nevada. The massive structure is still under construction and will be for some time. Reportedly, Panasonic and Tesla are working on an agreement to begin a second round of construction that will up capacity by as much as 50 percent.

Panasonic Tesla

Panasonic lithium-ion automotive battery factory in Dalian, China

The Japanese battery maker is already expanding at its new facility in Dalian, China. This second production line project is costing the company upwards of several hundred million dollars and is set to be complete this coming March. When complete, the Chinese plant will double its production capabilities, with a reach of supplying some several hundred thousand vehicles per year.

The third move in Panasonic’s game involves beginning to manufacture automotive batteries at its current LCD plant in Himeji, Japan, which is near Kobe. This step will not take place until fiscal 2019 and will also cost another several hundred million dollars.

This is significant proof of the battery maker’s transition away from appliances and toward the automotive sector. The company already maintains about 40 percent of the global market share for lithium-ion automotive batteries. However, while the company continues to thrive in the current business sector, autos are showing a much more substantial future.

All in all, Panasonic will spend nearly $900 million over just a few short years. However, Panasonic was safe to say that it will still make LCD displays for medical equipment, and will only move forward with additional production lines if orders continue to surge. This is likely due to the company’s poor judgments in the past, which contributed to large-scale profit loss. A senior executive shared:

“There have been a lot of battery production requests from automakers, but we’ll only do what’s profitable. We’ll also wait to see how orders look before building new production lines.”

Source: Nikkei Asian Review

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13 responses to "Panasonic To Increase Battery Cell Production In U.S., Asia"

  1. mx says:

    “We’ll also wait to see how orders look before building new production lines.”

    Not confident in your product or your engineering? Get out of the Market. Let LG take the sales.

    This is the MOST INSANE Comment I’ve ever heard. Global Demand is Easily 20X their planned production capacity.

    Fire this CEO.
    Get a REAL CEO in Charge.

    1. SJC says:

      They know more about who they want running the company than anyone else.

    2. Pushmi-Pullyu says:

      mx said:

      “Not confident in your product or your engineering? Get out of the Market. Let LG take the sales.”

      You seem to be under the mistaken impression that LG Chem isn’t doing exactly the same. Why do you think LG Chem requires orders two years in advance? It’s because it takes that long to build out new supply, and they will do so only for guaranteed contracts.

      This, EV fans, is why Tesla had to spend billions of dollars building Gigafactory One. Not primarily to reduce costs for battery cells, but so they could crank up production as fast as they need to.

      Other auto makers will either have to do the same, or will find themselves unable to compete on volume of EV sales with the auto makers which do control their own supply. Right now, that’s only BYD and Tesla.

      1. SJC says:

        Marketing aligns consumption with production, to build then they will come “confidence” is a way to bankruptcy.

    3. unlucky says:

      If global demand is really that high then they’ll be building plants. So don’t sweat it.

  2. Benz says:

    Panasonic should want to become the global market leader in automotive battery cell production.

      1. Benz says:

        Not only now, but also in the future.

        That is what I actually meant to say.

        They should build out their lead, so much that nobody can catch on.

  3. Kdawg says:

    That photo of the Gigafactory kinda looks like um.. phallic. (sorry)

    When is the rest of the plant scheduled to be complete? That will make a lot more room for more Panasonic equipment.

    1. Pushmi-Pullyu says:

      Not everything longer than it is wide is a phallic symbol.

      “Sometimes a cigar is just a cigar.” — Sigmund Freud

      1. kdawg says:

        Well it was more than that. I want to see the diamond shape w/the solar roof.

  4. Ron M says:

    Are those solar panels on the roof.

    1. unlucky says:

      No, the Gigafactory only has solar panels on the roof in the proposal images created.

      The plant gets its energy from the NV Energy generation plants, it is not generated on-site.

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