Japanese technology firm Panasonic will be reducing its domestic output of electric vehicle batteries due to reduced demand for high-end EVs,Car Expert reported. The company reduced EV battery production by 60% compared to the previous quarter, it announced during an earnings call.
Some production lines have already halted in order to reduce the stockpile of EV batteries, and Panasonic’s domestic EV battery production cut will likely last until March 2024 at the soonest, its group CFO Hirokazu Umeda announced. “We are talking with many other potential domestic customers; we are thinking of many uses [for the battery capacity],” Umeda said.
Domestic battery production for Panasonic currently accounts for 20% of its global total, and in addition to Japan, the manufacturer also produces batteries in China and the United States, where it produces battery cells for Tesla, specifically for the Model 3 and Model Y in Nevada, the report wrote.
In addition to its reduced production from Japan, Panasonic will also not be increasing production volume at its US facilities at this time. It remains to be seen if the battery manufacturer’s decrease in Japanese production volume would have any knock-on effect on the production and supply of EVs, according to Car Expert.
In June this year, Panasonic announced that it will be supplying Mazda as well as Subaru with batteries in the second half of this decade.
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“World’s Biggest Battery Maker CATL Earnings Miss as EV Sales Dip”
I am looking forward to the doomsday of chinese ev makers. Very exciting!
China produces the most EVs but even Chinese themselves claimed that EV is a big scam, not worth to buy now.
Just like climate change, nothing but a big Western scam. China just trying to call their bluff by dumping EVs down their throat. Meanwhile, Japs also losing faith..
Don’t know what report you are reading. Chinese EV sales are set to break records again this year, breaking initial estimates and has gone up in October.
Are there some drivers who find charging difficult and their usage patterns not conducive to EVs, definitely. But by and large EV has been very well received in China, in large part due to RM5.50 petrol/litre. The sales numbers do not reflect what you said
This is good news… Battery prices should go down quick yess
The article clearly states “reduced demand for high-end EVs”. Model X and S in the US do not get tax credit and sales are slow. The Model S is a 11 years model. The Model X is a 7 year model. Both essentially unchanged
Panasonic is not reducing their production in Nevada, which produces batteries for the Model 3 and Y. Their report notes “…..demand for battery cells made in North America with tax credits for EVs purchased in the U.S. “is” our key market.”
Model Y continues to be the best selling car in the world. ICE or EV. Hope that clears things up