Panasonic to invest $4.9 bn in EV batteries, supply chain software

Panasonic Corporation is joining the high-growth electric vehicles (EV) market, with plans to invest nearly $4.9 billion in automotive batteries, supply chain software and cyber physical systems, among others.

The Japanese company said to achieve its future goals, the group is to invest 400 billion yen (nearly $3.26 billion) in "growth areas" and 200 billion yen (about $1.63 billion) in "technology pillars" respectively in three years, from fiscal 2023 to 2025.

As part of the company's medium and long-term growth strategy, it will invest in automotive battery area, supply chain software area, air quality and air conditioning area, hydrogen energy and CPS (cyber physical system), it said in a statement

"While maintaining financial discipline, the group is to make group-wide strategic investments with the cash generated through enhancement of competitiveness, as well as the investments made by each operating company," the company added.

It is also targeting an accumulated operating profit of 1.5 trillion yen over the period.

The group aims to reduce the impact of over 300 million tonnes of CO2, which are equal to approximately 1 per cent of total global emissions (as of today) by 2050.

In November 2021, Panasonic, formerly known as Matsushita Electric Industrial Co., unveiled an updated version of its EverVolt home battery system — an emergency power back up system that stores surplus solar energy for use when the power goes out or in the evenings when rates are highest.

The EverVolt™ 2.0 battery storage system integrates seamlessly with Panasonic solar panels to create the Total Home Solar Energy System, enabling homeowners to generate and store abundant clean energy, stated the company. It can be AC- and DC-coupled to work with both new and existing solar panel systems.

Additionally, last year, the company closed a $7 billion acquisition deal with supply chain AI software provider Blue Yonder.

Earlier, Panasonic formed a joint venture with Toyota that specialises in automotive batteries.