Panasonic Automotive Systems Takes Battery Production to the Next Level

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As we move further away from fossil-fuel-powered – and even hybrid – vehicles, and customer demand for electric transport grows, the need for new manufacturing solutions also is expanding.

Perhaps chief amongst these is the challenge of meeting the manufacturing demand for the specialist batteries that must be produced to power these vehicles. Vehicular battery production comes with a host of challenges – from manufacturing to environmental and ethical concerns – and brands all over the world in the automotive space are working hard to unleash and enable innovative solutions.

As one of the largest and most well know manufacturers in this industry, Panasonic Automotive is working on its own battery production and believes it has taken it to new heights, which will empower the company to meet the electric vehicle needs of the future.

Panasonic Automotive

Historically, Panasonic developed its proprietary cylindrical lithium-ion batteries for notebook computers, but demand for electric vehicles led the company to expand the technology and enter the automotive battery business.

To help meet this demand, Panasonic Automotive broke ground on a new manufacturing facility in North America. This modern and technology packed plant was developed with a stated goal of positioning Panasonic to play an active role in a future where electric vehicles will become ubiquitous as a key component of a global commitment to addressing the environmental issues that plague the planet.

"We set up the North America operation by drawing on the know-how we've gained from lithium-ion battery production in Japan – know-how that has allowed us to build a plant that is five times the size and three times the speed of conventional facilities," said Head of Energy Technology and Manufacturing North America, Shawn Watanabe. "Due to the nature of the product, we had to meet extremely high standards for safety and quality, and with a new workforce in a location with a different culture and language while also being agile and precise. We couldn't compromise on any of these points if our goal was uninterrupted production of high-precision batteries."

To meet the challenges of battery production, Panasonic North America is developing technology that will allow its batteries, through a combination of improving the chemical composition of active materials and increasing the amount of that material in each battery, to store more energy than previously possible, thus increasing the range electric vehicles can travel on a single charge by as much as 15%.

The company has also succeeded in drastically reducing the amount of cobalt required to manufacture its lithium-ion batters to less than 5% through the use of alternative elements and surface treatment – ensuring its batteries are some of the most sustainable on the market.

"We started researching lithium-ion batteries in the 1980s, and since then have been keenly aware of the need to address the issue of rare metals,” explained Watanabe. “Our goal from day one was to minimize the amount of cobalt used for automotive batteries."

Tesla Signs On As Customer

Panasonic Automotive’s revolutionary battery manufacturing technology even caught the attention of electric vehicle trailblazers Tesla, and recently announced they supply Tesla with batteries beginning in 2023.

Stemming from a special request from Tesla, Panasonic began developing the new 4680 battery cells. The current flagship Tesla Model S has a range of about 650 kilometers on a single charge, which is expected to increase to approximately 750 kilometers once the new Panasonic batteries are installed. Batteries make up roughly 30% of the total cost of every electric vehicle, and the increased capacity and size of the new 4680 battery cells is expected to reduce production costs by approximately 10-20%.

The ability to drive further on each charge is likely to increase demand even further for electric vehicles. With the combination of its innovative North American manufacturing plant and this lucrative Tesla contract , Panasonic clearly plans for a lucrative future in the automotive business.

"Taking up the challenge, we communicated with each other, localized the meticulous manufacturing system used in Japan and made further improvements based on local needs. Collectively, we have forged a strong relationship of trust with our US colleagues, and the results speak for themselves," concluded Watanabe.

Final Thoughts

As fossil-fuel powered transport is gradually phased out, electric vehicles are going to grow in popularity. However, the challenges associated with developing and producing sustainable and efficient batteries for these vehicles are no mean feat to overcome.

With big brands such as Panasonic Automotive and Tesla developing innovative solutions such as these, those challenges appear less daunting.


Learn more at Connected Manufacturing Forum 2022, being held in July at the Rancho Bernardo Inn, San Diego, CA.

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