TOKYO - Panasonic (OTC:PCRFY) is gearing up to significantly expand its electric vehicle (EV) battery production capabilities with an ambitious target to increase output fourfold by the year 2030. The Japanese electronics giant is focusing on enhancing its 2170 battery cells, which are utilized in Tesla (NASDAQ:TSLA)'s Model 3 and Model Y vehicles. These improvements are aimed at offering higher energy density, a move that could potentially reduce the costs of electric vehicles.
The company's expansion plans are already in motion with construction of a new factory in De Soto, Kansas. This facility is expected to start with an initial production capacity of 30 gigawatt hours per year. The expansion strategy also includes a facility in Oklahoma, which was announced in April 2023. The Oklahoma plant will be dedicated to manufacturing the larger format 4680 cells, a strategic step in bolstering Panasonic's growth in the North American market.
Panasonic's expansion efforts are not just about scaling up production but also about innovation and efficiency. The increased energy density of its batteries could be a game-changer for the EV industry by making electric cars more affordable and accessible to a broader range of consumers.
The company is also poised to benefit from financial incentives provided by the U.S. government. Operational profit gains are anticipated as a result of subsidies from the Inflation Reduction Act, which aims to encourage companies to invest in clean energy technologies and production within the United States.
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