Panasonic and Mazda Join Forces: EV Battery Supply Collaboration

Panasonic Holdings and Mazda have joined forces in a significant partnership for the electric vehicle (EV) components. As per a report from Nikkei China, Panasonic Energy, a subsidiary of Panasonic Holdings, and Mazda have announced their collaboration to supply EV batteries. Mazda plans to equip their electric cars, set to hit the market after 2025, with Panasonic's advanced lithium-ion batteries. The partnership may also involve a joint investment in the construction of a battery manufacturing facility in the United States. This move marks a pivotal step for Panasonic Holdings, as it will be their first direct battery supply to a major Japanese automaker, reducing their reliance on Tesla.

The agreement between Panasonic Holdings and Mazda is expected to be finalized within 2023, laying the foundation for a long-term cooperative relationship. Mazda is considering the adoption of Panasonic's cutting-edge 4680 specification lithium-ion batteries, which are slated for production and shipment in 2024. These batteries boast a capacity five times greater than the current 21700 batteries and offer lower internal resistance, enabling extended driving range for electric vehicles.

During a recent strategy briefing, Kazuhiro Tsuga, President of Panasonic Holdings, announced their prioritized investment in automotive batteries. They aim to increase their current battery production capacity of approximately 50 GWh to an impressive 200 GWh by 2030.

To support the development of the electric vehicle industry, the United States has implemented favorable policies, providing incentives for battery companies to establish manufacturing facilities within the country. Panasonic already operates two battery factories in the United States and has confirmed plans to construct a third. Speculation suggests that the batteries supplied to Mazda may be produced at Panasonic's upcoming factory in Kansas, scheduled to commence operations in 2024.

In relation to the joint battery factory construction and talent exchange with Mazda, Panasonic Holdings stated, "Discussions are ongoing, and we are considering all possibilities." A decision regarding securing land for construction and establishing the third new factory in North America may be reached by the end of 2023.

According to statistics from Techno Systems Research, a Japanese research firm, Panasonic Holdings currently holds a 7.7% share (based on capacity) in the global automotive battery market, ranking fourth. The leading position is held by China's CATL (Contemporary Amperex Technology Co. Limited).

Mazda achieved global vehicle sales of 1.11 million units in the fiscal year 2022. They have set an ambitious goal to have pure electric vehicles account for 25-40% of their global sales by 2030. Starting from 2028, Mazda plans to expand their pure electric vehicle lineup while continuing to offer hybrid vehicles (HV) and plug-in hybrid vehicles (PHV). Their total investment in electrifying their vehicles by 2030 is estimated at 1.5 trillion yen, with approximately 500 billion yen allocated for battery development.