Panasonic calls for more productivity amid uncertainty over 3rd EV Battery plant in U.S.

Panasonic is calling on the company employees to boost productivity and focus on increasing production at existing electric vehicle (EV) battery manufacturing plants in the U.S.

Panasonic Group CEO, Yuki Kusumi told Reuters that the company may hold horses in building the third EV battery plant in the U.S. It previously planned to establish a new facility inside the U.S. but a decision is still pending.

Panasonic CEO told in the interview that a decision would be made only “when the timing is right”.

“I keep telling people we need to think about thoroughly raising productivity before setting up a third location,” Kusumi said.

The latest comments from the battery maker come amid the demand for EVs swinging off and these changes in demand are also observed by some of the market giants such as Ford and General Motors.

Both of these car companies are scaling back their EV production strategies and investment plans.

Productivity:

Panasonic has two factories, the first in Nevada, and the second plant is underway in Kansas. Once completed, the Kensas plant is likely to add 80 gigawatt hours (GWh) per year to the company’s annual output and aim to increase 200 GWh by 2031.

Kusumi said he ordered the battery division to increase focus production at existing plants. He also dodged the current possibility of building a third plant by saying it “was better to have fewer production sites”.

The Japanese EV battery maker further explains that the existing plant can produce more volume with new machine maintenance.

In his closing remarks, Kusumi said that the company is working more on the productivity section to generate more profit around the globe instead of just relying on the U.S. Inflation Reduction Act, which provides tax relief for new businesses around domestic EV and battery production.

(source)