Panasonic plans to double its electric vehicle battery production in Japan.

Panasonic Holdings Corporation hopes to more than double its production of electric vehicle batteries in Japan to supply potential customers such as Mazda and Subaru, and to improve the performance of its Japanese factories. On May 21, Panasonic President and CEO Yuki Kusumi said in an interview, "We are estimating our 2030 targets based on (potential) customer demand. Currently, the challenges we face in the profitability of our automotive battery business stem from a sharp drop in demand for batteries for specific models." Due to reduced demand from major customer Tesla, Panasonic previously cut production at its Japanese electric vehicle battery factory. A Panasonic document shows that the company intends to more than double its capacity in Japan by 2030. Currently, Panasonic's annual capacity in Japan is about 12 GWh, while its annual capacity in the United States is about 38 GWh. Kusumi stated that to achieve this goal, Panasonic may retrofit some production lines in Japan to produce more advanced batteries required by automakers. Panasonic is currently in talks with Mazda and Subaru to supply cylindrical Li-ion batteries for their electric vehicles. Kusumi reiterated that Panasonic needs to take more measures to bring underperforming businesses back to normal. He also stated that some departments within the company lack a "sense of urgency" and "strict enforcement" in achieving profit targets. Panasonic is unlikely to achieve its main profit targets, namely a 10% return on equity and cumulative operating profit of 1.5 trillion yen by March 2025. Panasonic has decided to sell its automotive parts subsidiary to a U.S. asset management company. As for whether to consider selling or restructuring other businesses, Kusumi did not elaborate. He said, "Selling businesses is not our goal." Panasonic and its group companies will review the profitability of each business unit and take measures, including replacing management or transferring employees to more promising business areas, to improve operations.