A joint venture between Panasonic Corporation PCRFY and Toyota Motor Corporation TM is set to begin the production of batteries for hybrid electric vehicles in Japan in the next two years.
What Happened: The prismatic lithium-ion batteries will be made at the Tesla Inc TSLA-supplier Panasonic’s Tokushima Prefecture-based plant on a new production line, Prime Planet Energy & Solutions Inc, the joint venture entity, said in a statement Tuesday.
The production line in Western Japan will begin making the batteries in 2022 for nearly 500,000 vehicles a year, the company said, adding that “the global electric vehicle market is expected to continue growing rapidly.”
Why It Matters: Panasonic said last month it was expanding its production capacity at Tesla’s Nevada Gigafactory by 10% by adding a new EV battery manufacturing line.
Battery makers such as China’s CATL and Korea’s LG Chem Ltd LGCLF expect to double their revenues to $25.3 billion by 2025.
Panasonic’s Japan move comes at a time when analysts expect the growth of battery makers to be stunted in the long-term after Tesla revealed a plan to halve battery costs and make them at its own factories.
The Elon Musk-led company revealed a new battery design at its battery day event, which it claims would cost 50% less and increase power by six times and energy by five times, while giving vehicles an extra 16% range.
Price Action: Panasonic OTC shares closed 1.73% higher at $8.51 on Monday. On the same day, Toyota shares closed 0.28% higher at $132.10 in New York.
Photo courtesy: Prime Planet Energy & Solutions Inc
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.