Panasonic investing $4.89 billion into software development, EV batteries and equipment upgrade
World renewed brand for batteries Panasonic Corporation is also the primary supplier for EV maker Tesla. The company has partnered with serval manufacturers to develop world-class batteries and, in accordance, building facilities around the globe to make them cost-efficient.
Formerly known as Matsushita Electric Industrial Co. Ltd is a Japanese multinational brand with a vast portfolio. The company managed to bank approximately $6 billion in 2020 with pure revenue by supplying battery products. Renowned EV brand Tesla is one of its core customers. The company is developing a manufacturing plant in the US to polish the supply chain further.
As the CEO Yuki Kusumi talked in an online news conference, a new strategy was developed to spend $4.89 billion on software development, EV batteries, and more. At Tech News Hub, we previously discussed Panasonic's move towards supplying EV batteries, followed by new facilities construction. $4.89 billion will be invested towards EV batteries, hydrogen energy, software development, digitalisation of the workforce and more.
The Japanese multinational brand is known mainly for its superior batteries. The current trend on EVs is gaining additional business to ramp up the production line. The forward-looking statement shared by Panasonic talks about promptly finding and offering the optimum solution.
Linking real issues in "lifestyle" & "workstyle" with cyberspace is given priority with CPS technology. Cyberspace and physical space (CPS) are hardware or services learning from Yohana's strengths. According to the CEO of Panasonic, "high-level modelling by sensing people's emotions & conditions" is required for digital transformation (DX).
Medium-term management indicators (KGI) say the accumulated operating CF of the company remains 2.0 trillion yen (FY23-FY25) and ROE (FY25) 10 per cent or higher. The numbers mentioned here are directly from the CEO's statement and accumulated OP (FY23-FY25) of 1.5 trillion yen (1 yen = 0.0074 euro).
The 104-year-old Japanese multinational is shifting its strategy from a full-fledged electronic manufacturer to compatible goods with the latest generation products. Over the three years, from 2023 to 2025, Panasonic will spend the mentioned allowance. $3.2 billion out of the whole amount will fund "growth areas" projects such as automotive batteries and software. $1.6 billion is going towards "technology pillars." Technology pillars are hydrogen energy and cyber-physical system integration.
The new 4680 batteries introduced by Tesla, which are in production by Panasonic, are five times larger than the ones Tesla EVs used in 2020. With energy efficiency and carbon footprint tackling, efforts are rising. The newer batteries are also gaining popularity. Other EV manufacturers also joined the efficient battery manufacturing plot. In response, the production line is going out of hand.
Orders placed on EV battery manufacturers skyrocketed. The Japanese factory plays a vital role to compete with other battery manufacturers and keeping its crown as the primary supplier of Tesla EV batteries. The US plant to develop batteries natively takes billions of dollars, whereas Tesla also invests quite a lot.
Blue Yonder, an AI supply chain software provider recently brought by the US, was again in an auction. US supply chain software provider JDA kept the firm three years after the acquisition. Panasonic repurchased it last September.
Blue Yonder AI integration on Panasonic batteries should advance its protocols, meaning less hassle on Tesla and other EV manufacturers' side to make it efficient, software-wise. Battery manufacturers can only do physical efficiency for the units. EVs will have to make sure their components are less power-hungry to go the extra mileage on a single charge.
Check out the official press conference from Panasonic CEO Yuki Kusumi here.
The long-term strategy of the Panasonics effort is planned till 2030. After that, the motion will be revisited. At the moment, back-casting from social changes is given priority, and Panasonic is contributing mainly to the management that maximises each employee's potential and its world-class products.