Panasonic's energy unit prepares for high-capacity EV battery production

KINOKAWA (Japan): The energy unit of Japan's Panasonic Holdings has finalised preparations for the mass-production of its high-capacity electric-vehicle batteries, the company said today, as it seeks to start supplying the cell to automakers.

Panasonic Energy's renovated plant in the western prefecture of Wakayama will serve as the main factory for producing the 4680 cells, which the Tesla supplier says have five times the capacity of its small 2170 cylindrical batteries.

The company has sent samples of the 4680 batteries to some automakers to which it is already a supplier, and intends to kick off production after getting the green light from clients, a Panasonic spokesperson said.

It had previously said it planned to start production of the 4680 cells at the Wakayama plant, where it formerly made parts for automotive batteries, in the first half of the current business year that started in April.

The bigger cells, which have a diameter of 46mm and an 80mm height, will allow automakers to extend the driving range of electric vehicles and use fewer cells to achieve the same battery pack capacity, Panasonic Energy said in a statement.

The company held a ceremony to mark the completion of preparations to start mass-producing the batteries and showed an inspection line where trays stacked with the silver-coloured cells could be seen running through.

Panasonic Energy plans to start battery production at an annual capacity of several gigawatt hours, CEO Kazuo Tadanobu told reporters after the ceremony, adding the global EV market was likely to expand over the medium to long-term.

The Wakayama plant is expected to employ roughly 400 staff in the development and production of the new batteries by March 2025, and serve as a site for trying out processes that it could implement at other battery factories around the world, the company said.

Panasonic Energy already makes 2170 and 1860 cylindrical EV batteries at its Suminoe and Kaizuka plants in Japan.

The battery manufacturer and automaker Subaru for which the US is a key market, said last week they will set up a plant in Gunma prefecture north of Tokyo for the supply of automotive batteries from the 2028 business year.