The Japanese electronics giant Panasonic is extending its automotive operations by entering into a joint venture to make batteries for electric vehicles in China.
All the giants from the electronics industry want a bigger share from the car components business and Panasonic is speeding up on its plan to become a major player within the automotive suppliers’ world. The company is aiming at around 18.7 billion dollars in sales from the auto business overall, more than a 60 percent boost, including the infotainment systems and industrial devices, at the end of the 2018-2019 fiscal year. As the next step in expanding its auto-portfolio, Panasonic announced it established a partnership to make automotive batteries in China starting with 2017, together with Dalian Levear Electric Co. The 50/50 joint venture, officially named Panasonic Automotive Energy Dalian Co, will build and export lithium ion batteries for electric or hybrid cars, but will also supply the local automakers which are developing green vehicles.
Demand for such batteries are increasingly growing on a global scale, as more and more automakers are planning to fully electrify their lineups, thus an overwhelming number of environmentally friendly models are announced to emerge until the end of the decade. Furthermore, China is also intensifying its efforts to bring cleaner cars into market, as it faces environmental issues, and a local plant for Panasonic will definitely help its businesses to meet a higher demand for batteries. Separately, the electronic company also plans to produce new molding compounds for laser welding that it says will improve the long-term reliability and design of automotive switches and sensors.
Via Automotive News