A joint venture between Panasonic Corporation (OTC:PCRFY) and Toyota Motor Corporation (NYSE:TM) is set to begin the production of batteries for hybrid electric vehicles in Japan in the next two years.
What Happened: The prismatic lithium-ion batteries will be made at the Tesla Inc (NASDAQ:TSLA)-supplier Panasonic’s Tokushima Prefecture-based plant on a new production line, Prime Planet Energy & Solutions Inc, the joint venture entity, said in a statement Tuesday.
The production line in Western Japan will begin making the batteries in 2022 for nearly 500,000 vehicles a year, the company said, adding that “the global electric vehicle market is expected to continue growing rapidly.”
Why It Matters: Panasonic said last month it was expanding its production capacity at Tesla’s Nevada Gigafactory by 10% by adding a new EV battery manufacturing line.
Panasonic’s Japan move comes at a time when analysts expect the growth of battery makers to be stunted in the long-term after Tesla revealed a plan to halve battery costs and make them at its own factories.
The Elon Musk-led company revealed a new battery design at its battery day event, which it claims would cost 50% less and increase power by six times and energy by five times, while giving vehicles an extra 16% range.
Price Action: Panasonic OTC shares closed 1.73% higher at $8.51 on Monday. On the same day, Toyota shares closed 0.28% higher at $132.10 in New York.
Photo courtesy: Prime Planet Energy & Solutions Inc