Focused Investment in the Ficosa Partnership, ADAS and Automotive Batteries

「In the business supporting AI infrastructure, Panasonic Energy Co., Ltd. is proceeding with plans to expand lines at existing domestic sites for the production of lithium-ion battery cells for data centers, as well as to use part of its automotive battery lines. For energy storage modules, in addition to increasing domestic production capacity, we decided to expand existing lines at our factory in Mexico and build a new factory nearby.」

「In the automotive business, although market conditions for electric vehicles deteriorated due to the impact of U.S. policy developments and other factors, sales volumes of cells manufactured at our North American plants increased following the start of operations at the Kansas plant in North America.」

「In July, Panasonic Energy Co., Ltd. began mass production at its automotive battery factory in Kansas, United States, which aims to achieve annual production capacity of approximately 32 GWh in the future.」

「We also renovated the Wakayama factory and completed preparations for mass production of 4680 cells, which achieve high energy density while ensuring safety ahead of the industry.」

「During the interim consolidated accounting period, Panasonic Energy Co., Ltd. announced in May that it had begun supplying lithium-ion batteries for heavy-duty EV trucks sold in the United States by Hexagon Purus ASA of Norway and Hino Motors Sales U.S.A., Inc. In addition, in September it announced that it had begun preparations, in collaboration with SUBARU and Mazda Motor Corporation, for plans including the construction and expansion of domestic factories for automotive lithium-ion batteries.」

「We also began discussions with Mazda Motor Corporation and SUBARU to establish medium- to long-term partnerships. As a result, in March 2024 we signed a memorandum of understanding with Mazda Motor Corporation for the supply of cylindrical automotive lithium-ion batteries and a basic agreement on collaboration with SUBARU concerning supply, thereby expanding our customer base.」

「During the third quarter, Panasonic Energy Co., Ltd. signed in April a supply agreement with Norway's Hexagon Purus ASA for automotive batteries for commercial vehicles in North America. It also began discussions with Mazda Motor Corporation, announced in June, and SUBARU, announced in July, to establish medium- to long-term partnerships for the supply of automotive batteries.」

「During the second quarter, Panasonic Energy Co., Ltd. signed in April a supply agreement with Norway's Hexagon Purus ASA for automotive batteries for commercial vehicles in North America. It also began discussions with Mazda Motor Corporation, announced in June, and SUBARU, announced in July, to establish medium- to long-term partnerships for the supply of automotive batteries.」

「While designating the automotive battery business as a priority investment area, we are managing the business with a review and possible reshaping of the business portfolio in view as we move toward the growth phase. During the first quarter, Panasonic Energy Co., Ltd. signed an agreement with Norway's Hexagon Purus ASA, which manufactures zero-emission mobility and infrastructure solutions, to supply automotive batteries for commercial vehicles in North America. It also agreed with Mazda Motor Corporation to examine the establishment of a medium- to long-term partnership to meet rapidly growing demand for battery EVs and automotive batteries.」

「By expanding our supply capacity for automotive batteries for EVs, we will promote the electrification of mobility and aim to contribute to CO2 reductions of 5,900 tons in fiscal 2030, 5 times the contribution in fiscal 2022.」

「In July of the same year, Panasonic Energy Co., Ltd.'s application under the U.S. state of Kansas's investment-incentive grant program, "Attracting Powerful Economic Expansion," for its plan to build an automotive battery factory was approved by the state, and in October of the same year our Board of Directors decided to build the factory.」

「In July of the same year, Panasonic Energy Co., Ltd. applied for the U.S. state of Kansas's investment-incentive grant program, "Attracting Powerful Economic Expansion," for its plan to build an automotive battery factory, and the application was approved by the state.」

「Leveraging our battery technology and manufacturing expertise accumulated over many years, we accelerated technological development by applying informatics to electrodes, electrolytes and production processes, and developed the 4680 automotive high-capacity lithium-ion battery cell, whose energy capacity is approximately 5 times that of the conventional "2170" cell. ... We will install production equipment at the Wakayama factory and conduct mass-production validation.」

「(b) Automotive Sales were ¥774.9 billion, up 7% year on year. Despite the impact of semiconductor shortages, sales increased overall as automobile production recovered from the previous year. ... (e) Energy Sales were ¥568.0 billion, up 27% year on year. Strong demand drove significant growth in automotive batteries, while energy storage systems also performed well, resulting in higher sales. Operating profit increased to ¥51.9 billion, up 157% year on year. Although higher raw-material prices had an adverse impact, the positive impact of higher sales was substantial.」

「Automotive sales were ¥731.3 billion, up 28% year on year. Automotive equipment grew as automobile production recovered, while strong demand for automotive batteries also drove sales growth. Operating profit increased to ¥7.1 billion from a loss of ¥4.4 billion in the previous year, aided by the positive impact of higher sales.」

「Automotive sales were ¥373.7 billion, up 77% year on year. Both automotive equipment, which grew as the automobile market recovered, and automotive batteries, which benefited from higher demand and a rebound from the temporary suspension of a customer factory in the previous year, recorded higher sales. Operating profit increased to ¥9.8 billion from a loss of ¥9.5 billion in the previous year. Despite the absence of a one-time gain recorded in the previous year, the increase in sales had a substantial positive impact.」

「With the introduction of this technology, the North American battery factory reached its targeted production capacity of approximately 35 GWh. ... In addition, following the establishment of the North American battery factory, the cylindrical automotive battery business recorded its first full-year profit.」

「As part of efforts to strengthen competitiveness through co-creation, Prime Planet Energy & Solutions, Inc., the joint venture with TOYOTA MOTOR CORPORATION in the automotive prismatic battery business, commenced operations on 1 April of the same year. We are working to develop highly competitive batteries offering excellent quality and performance at competitive cost, as well as ensure a stable supply of batteries.」

「During the first quarter, Prime Planet Energy & Solutions, Inc., the joint venture with TOYOTA MOTOR CORPORATION in the automotive prismatic battery business, commenced operations on 1 April 2020. We will work to develop highly competitive batteries offering excellent quality and performance at competitive cost, as well as ensure a stable supply of batteries.」

「Effective 1 April 2020, we transferred the automotive prismatic battery business of Sanyo Electric Co., Ltd., our consolidated subsidiary, to Prime Planet Energy & Solutions, Inc. (PPES), whose shares are held by Panasonic Holdings Management GK (PEMJ), our consolidated subsidiary, through a company split. We also transferred to PPES all equity interests in Panasonic Automotive Energy Dalian Co., Ltd. held by Panasonic China Co., Ltd., our consolidated subsidiary. On the same date, PEMJ transferred part of its shares in PPES to TOYOTA MOTOR CORPORATION, making PPES a joint venture. Following the share transfer, our ownership interest was 49%, PPES became our equity-method affiliate and ceased to be a consolidated subsidiary.」

「At a meeting of the Board of Directors held on 3 February 2020, we resolved to convert Prime Planet Energy & Solutions, Inc. (PPES), a consolidated subsidiary wholly owned by Panasonic Holdings Management GK, itself a wholly owned consolidated subsidiary of our company, into a joint venture effective 1 April 2020.」

「As the competition-law review had ended during the second quarter, as of the end of the second quarter we have presented the assets scheduled to be transferred to the joint venture as assets held for sale and the directly related liabilities as liabilities directly associated with assets held for sale.」

「Sales were ¥377.4 billion, up 6% year on year. Automotive equipment sales declined slightly due to deteriorating market conditions in China, but overall sales increased because of the benefits of investment to expand automotive battery production.」

「Establish a joint venture by the end of 2020, subject to approval by the competition authorities in each country and region ... Ownership of the joint venture: Toyota 51%, our company 49% ... Business scope of the joint venture: research, development, production technology, manufacturing, procurement, order acceptance and management relating to automotive prismatic lithium-ion batteries, all-solid-state batteries and next-generation batteries」

「・Establish a joint venture by the end of 2020, subject to approval by the competition authorities in each country and region ・Ownership of the joint venture: Toyota 51%, our company 49% ・Business scope of the joint venture: research, development, production technology, manufacturing, procurement, order acceptance and management relating to automotive prismatic lithium-ion batteries, all-solid-state batteries and next-generation batteries」

「Sales were ¥1,469.6 billion, up 9% year on year. Sales increased, driven by Automotive, where infotainment grew in Japan, Europe and the United States, and Energy, where automotive batteries achieved significant growth. Operating profit declined 26% year on year to ¥29.0 billion. Although higher sales contributed to profit, operating profit was affected by increased start-up costs at the North American automotive battery factory and lower sales in Mechatronics.」

「During the first quarter of the fiscal year, effective 1 April 2018, we reorganized the secondary battery business by customer and industry to achieve further growth in this rapidly expanding business, which is centered on lithium-ion batteries for automotive applications. We will accelerate our growth strategy under an efficient development-resource structure. ...Sales in Automotive & Industrial Systems were ¥733.8 billion, up 12% year on year.」

「In the automotive business, we expanded production capacity for automotive batteries, including by beginning mass-production shipments from the new factory in Dalian, China. We also agreed with TOYOTA MOTOR CORPORATION to examine the possibility of collaboration aimed at further advancing automotive prismatic batteries.」

「In December, we agreed with TOYOTA MOTOR CORPORATION to examine the possibility of collaborating on the automotive prismatic battery business. The two companies will examine specific areas of collaboration with the aim of producing the industry's No. 1 automotive prismatic battery and contributing to the widespread adoption of electrified vehicles by automakers, not only TOYOTA MOTOR CORPORATION.」

「In the automotive business, a new factory for automotive lithium-ion batteries was completed in Dalian, China, in April 2017. In addition, to expand production capacity, we decided to begin producing automotive batteries at the Himeji factory of Panasonic Liquid Crystal Display Co., Ltd. We are therefore establishing production systems in Japan, the United States and China and promoting efforts to strengthen the global competitiveness of our automotive batteries.」

「In the automotive business, a new factory for automotive lithium-ion batteries was completed in Dalian, China, in April of the same year. This became our first production site for automotive battery cells in China. By establishing a production system in China in addition to Japan and North America, we aim to further strengthen the competitiveness of our automotive batteries.」

「By leveraging the technologies of Ficosa, a leading Spanish automotive mirror manufacturer that became a consolidated subsidiary, and OpenSynergy, a German automotive software development company, we will strengthen the development of next-generation cockpit systems and advanced driver assistance systems (ADAS) and accelerate business growth. For automotive batteries, we will expand our production system across 3 global regions—Japan, the United States and China—to meet strong demand for environmentally friendly vehicles.」

「Through collaboration with Ficosa, a leading automotive mirror manufacturer, we aim to achieve new growth in the next-generation cockpit business. Looking beyond fiscal 2018, we will focus management resources on strengthening development and expanding production sites for ADAS (advanced driver assistance systems) and automotive batteries to support further growth.」