Panasonic prioritizes productivity increase over new US EV plant.

Panasonic Group CEO Yuki Kusumi recently spoke to Reuters about the company’s strategy for its battery business in light of changes in the electric vehicle (EV) market. With cooling demand for EVs in the United States and Europe, Panasonic’s battery unit, Panasonic Energy, is reevaluating plans for building a third battery plant in North America.

While Panasonic Energy had initially intended to decide on the construction of a new factory by the end of March, Kusumi emphasized the need to focus on increasing productivity before moving forward with such plans.

The company currently operates a plant in Nevada, with a second facility under construction in Kansas. Kusumi stressed the importance of maximizing production capacity at existing sites before considering the location of a potential third plant. He also highlighted the significance of improving processes, such as machine maintenance, to enhance production efficiency.

In the face of evolving market conditions, Panasonic Energy is striving to boost its manufacturing capabilities to ensure profitability, without relying solely on legislative incentives like the U.S. Inflation Reduction Act. This forward-thinking strategy reflects Panasonic’s commitment to sustainable growth and adaptability in the dynamic automotive industry.