OSAKA (Kyodo) Panasonic Corp. began building a factory Monday in the city of Osaka to manufacture lithium-ion batteries, which are in strong demand for use in cell phones and personal computers.
Seeking to start full-fledged production in April 2010, Panasonic held a morning groundbreaking ceremony for the factory on the former premises of Kansai Electric Power Co.'s power plant in Suminoe Ward.
Panasonic will use a ¥100 billion capital outlay for the factory, which will have a monthly output capacity of 50 million battery units, the company said, adding the plant will begin making components for use in lithium-ion batteries in October.
Panasonic had a 10.5 percent share in the global lithium-ion battery market in fiscal 2007, clinching fifth place after lithium-ion battery industry leader Sanyo Electric Co., Sony Corp. and other firms, according to Japan Economic Center, a private-sector market research agency.
The consumer electronics giant is keen to increase its share to 20 percent on the strength of the factory's construction.
Sanyo, which Panasonic is preparing to make into a subsidiary this spring, is building new lithium-ion battery factories in Kaizuka, Osaka Prefecture, and Minamiawaji, Hyogo Prefecture.
The combined global market share of Panasonic and Sanyo in fiscal 2007 was 40 percent. Panasonic envisions following a global market expansion strategy on the basis of the combination of the two's businesses' resources.
