In a candid assessment, Panasonic Holdings’ energy unit has acknowledged the potential difficulty in achieving its previously stated goal of boosting electric vehicle battery capacity to 200 gigawatt hours per year by the early part of the next decade. The comments from the unit’s CEO, Kazuo Tadanobu, highlight the hurdles Panasonic Energy faces as a supplier to Tesla, amid cooling demand for EV batteries due to a slowdown in the adoption of battery-powered vehicles in the United States.
The energy division has also dropped the target year for achieving sales of over 3 trillion yen (USD 19.19 billion). Initially, the company had expected to reach both milestones by the 2030 business year, which ends in March 2031. However, Tadanobu candidly admitted during a meeting with financial analysts and reporters that achieving these targets around 2030 might be “a little hard.”
The latest acknowledgment follows remarks made last month by Panasonic’s top executive, Yuki Kusumi, who emphasised the need to calibrate the pace of investment in automotive battery plants based on the rate at which electric vehicles gain traction in the market. Kusumi’s comments underscored the company’s recognition of the importance of aligning its investment strategies with the evolving dynamics of the EV market.
While the targets remain aspirational goals for Panasonic’s energy division, the candid admissions reflect the company’s pragmatic approach to navigating the complexities and uncertainties of the rapidly evolving electric vehicle landscape. As a key player in the EV battery supply chain, Panasonic’s ability to adapt and recalibrate its strategies will be crucial in maintaining its competitiveness and meeting the demands of the market in the years to come.