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Panasonic intends to focus on product safety in traction battery market
03.02.2021 [07:59],
Alexey Razin

Until 20221, the Japanese corporation Panasonic remained the market leader in traction batteries for electric vehicles, but then the Chinese CATL and the Korean LG Chem moved it to the third position. According to representatives of the Japanese brand, Panasonic is not going to compete with them in price, it relies on the safety of operation of its own products.

Image source: Reuters

According to Nikkei Asian Review, for the current fiscal year, which ends at the end of March, Panasonic expects to show profit for the first time in the battery cell segment. Panasonic ended the first three quarters with an operating loss of ¥ 7.4 billion versus an operating loss of ¥ 29.2 billion in the same period last year. Accordingly, in the first quarter of the current calendar year, the situation will reverse in favor of making a profit at the operating level.

This dynamic was driven by both an increase in the production of Tesla electric vehicles and a decrease in the cost of purchasing materials for the production of battery cells. The scrap rate also decreased, which also contributed to the formation of an optimistic forecast for the entire fiscal year. Panasonic is no longer the only supplier of battery cells for Tesla. CATL and LG Chem Expand Partnership with Electric Vehicle Manufacturer, Particularly Outside US. Now the Japanese corporation controls only 18% of the market. According to this manufacturer, she is not going to get involved in price wars, but instead will focus on ensuring the quality and safety of core products.

Panasonic plans to build a battery cell manufacturing facility in Norway. Cooperation with Toyota is expanding, with which Panasonic has established a joint venture. The 4680 cells that Tesla boasted in September were actually designed by Panasonic. Over the next five years, the company intends to increase the capacity of Tesla’s traction batteries by 20% without offering significant revolutionary changes in the composition or design of batteries. For the next fiscal year, Panasonic renegotiated the agreement with Tesla – it is assumed that the latter will buy more batteries, but at a reduced price.

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