Panasonic Reports 47% Growth in Operating Profit in Electric Vehicle Battery Segment
Panasonic, through its battery manufacturing division Panasonic Energy, announced that its operating profit for the first quarter of fiscal year 2025 rose by 47% year-over-year, reaching 31.9 billion yen (approximately $215 million). This significant growth was primarily driven by a surge in demand for energy storage systems in data centers, fueled by the rapid expansion of artificial intelligence technologies worldwide. Leveraging this booming market, the Japanese company has largely offset the negative impacts caused by reduced electric vehicle incentives in the United States and increased import tariffs.
Despite ongoing challenges in the electric vehicle market, Panasonic reaffirmed its previous annual operating profit forecast, expecting to achieve 167 billion yen in the energy segment by the end of March 2026. The company acknowledged concerns about a potential decline in electric vehicle demand due to shifting U.S. government policies but noted that the unexpected rise in energy storage demand for data centers has significantly alleviated these worries.
A key strategic move by Panasonic to strengthen its position in the North American market has been the launch of a new manufacturing facility in Kansas, complementing its existing plant in Nevada. This decision aims to bolster the local supply chain and bring the company closer to major customers, including Tesla. Additionally, while Panasonic’s parent company announced plans in May to reduce its workforce by 10,000 employees in other divisions, it emphasized that the energy and battery unit will be exempt from these structural changes and continue its operations unaffected.
In a highly competitive global battery industry dominated by companies such as China’s CATL and South Korea’s LG Energy Solution, Panasonic remains committed to investing in advanced battery technologies and enhancing operational efficiency. The company believes that focusing on emerging sectors like energy storage for AI infrastructure will strengthen its competitive edge.
Overall, Panasonic’s strong performance this fiscal period highlights its resilience and ability to adapt to evolving market trends. By concentrating on alternative markets and forward-looking technologies, Panasonic has solidified its role as a key player in the global battery supply chain.
