panasonic

Panasonic Energy also plans to build a third plant in Mexico, with mass production scheduled for fiscal 2028.

The unit, which supplies batteries to Tesla, is forecast to more than double operating income.

Panasonic said this could boost battery capacity by 25%, extending the driving range of vehicles such as the Tesla Model Y by up to 90 miles.

The facility aims to reach an annual output of 1.4 million units by 2030.

Panasonic manufactures batteries for Tesla and other EV makers.

This decision follows a slowdown in sales faced by Tesla, Panasonic’s primary customer.

CEO Yuki Kusumi said the company is focusing on starting production at its second factory in Kansas.

Panasonic’s restructuring will incur a charge of 130 billion yen (US$895 million) as the company streamlines operations.

Panasonic now focuses on automotive batteries and industrial devices, benefiting from US tax credits.

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