Panasonic Holdings' decision not to rush into expanding capacity to build batteries has been validated by slower global demand for electric vehicles, CEO Yuki Kusumi said.
The supplier of lithium-ion batteries to Tesla is getting ready to start production at a second U.S.-based factory in Kansas, but has frozen plans for a third plant. Panasonic has been making batteries in Nevada since 2017, helping the carmaker ramp up volume sales for Tesla’s Model 3 and Model Y cars.
Panasonic may also be poised to benefit from having factories in the U.S. as Tesla and others seek to reduce their reliance on Chinese battery-makers, because of the tariffs being imposed on items imported into the U.S. and incentives provided under the Inflation Reduction Act. While Honda, Hyundai and others are expanding battery production in the U.S., Panasonic is well ahead of its rivals.
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