In its recently released earnings report, Panasonic confirmed that it has scaled back automotive battery manufacturing in response to low demand in the EV market. The company revealed a substantial 60 per cent reduction in EV battery production compared to the previous quarter during an earnings call.
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However, to manage the excess stockpile of EV batteries, certain production lines have already been halted. Currently, domestic battery production in Japan accounts for 20 per cent of Panasonic's global output. Apart from Japan, the company manufactures batteries in China and the United States, with a focus on supplying battery cells for Tesla, particularly for the Model 3 and Model Y, in Nevada.
Umeda-san during the earnings call presentation said, “We are talking with many other customers,” he further added “We are thinking of many uses [for the battery capacity].” as quoted by CarExpert.
The news of Panasonic's battery production cut had a negative impact on Tesla's stock, causing it to drop by 5 per cent on Monday. During Tesla's Q2 earnings call, CEO Elon Musk had already warned about potential issues affecting the company's Q3 performance, including high-interest rates and factory maintenance disruptions.
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Earlier this year in June, Panasonic announced its intention to supply batteries to Mazda and Subaru.
Written by: Ronit Agarwal
