Mazda Motor (TYO:7261) revealed Wednesday that the Japanese automaker is getting ready to start talks with the energy unit of Panasonic Holdings with a goal of setting up a battery supply partnership for electric vehicles (EVs). Mazda is hoping the partnership will carry the company towards a ramp in EV production.
According to a statement issued by the companies, Panasonic Energy will collaborate with Mazda in providing automotive cylindrical lithium-ion batteries manufactured in Japan and North America. These batteries are intended for use in Mazda electric vehicles, which are anticipated to be introduced during the latter half of this decade.
When asked about the specific battery cells that Mazda plans to use in its electric vehicles (EVs), a spokesperson from the company declined to provide details. However, they mentioned that Mazda would engage in discussions to ensure a stable supply of batteries starting from 2025-2027 or potentially even later.
Mazda has outlined a three-phase plan, and the aforementioned years are identified as the second phase. In November, Mazda had previously announced its intention to introduce battery EV models during the latter half of that particular phase.
Toyota (NYSE:TM), the leading automaker globally, with a stake of 5.1% in Mazda, revealed their extensive strategy last week aimed at enhancing the driving range and reducing costs of future EVs by embracing solid-state batteries and other advanced technologies.
In line with this development, Japan declared on Friday its intention to amplify assistance for domestic battery manufacturing, allocating funds of up to $2.2 billion. This initiative demonstrates Japan's commitment to bolstering economic supply chain security and extending support to Toyota and other manufacturers in the pursuit of this goal.