Panasonic’s EV battery plant delayed again as key automaker order stalls
Panasonic announced on 13 May that the start‑up of its new electric‑vehicle (EV) battery factory in Osaka Prefecture has been pushed back to early 2027, after a crucial supply contract with a major automaker failed to materialise. The plant, originally slated for commercial operation in late 2025, was expected to produce 30 GWh of lithium‑ion cells annually.
The postponement reflects broader turbulence in the global EV battery market, where demand forecasts have been revised downward amid slowing auto sales in China and supply‑chain bottlene bottlenecks. Japan’s battery manufacturers, long reliant on partnerships with domestic carmakers, have struggled to secure long‑term orders that justify the massive capital outlays required for new gigafactories.
Nikkei Asia reported that Panasonic’s President Kazuhiro Kobayashi said, “We are reassessing the timeline to align production capacity with confirmed demand.” In contrast, Reuters cited a senior source at the unnamed automaker who indicated that the order was delayed due to “re‑evaluation of battery chemistry and a shift toward solid‑state technology”. Industry analyst Yuki Matsumoto of Bloomberg added, “Panasonic’s setback underscores the risk of tying gigafactory construction to a single OEM contract.”
Commentators argue that Panasonic’s challenges could accelerate consolidation in Japan’s battery sector, prompting firms to seek joint‑venture models or diversify clients. “The firm must broaden its customer base beyond the traditional Japanese car makers to stay viable,” noted Professor Hiroshi Nakamura of Tokyo’s School of Engineering. Moreover, the delay may affect Japan’s strategic goal of securing a 30% share of the global EV battery market by 2030, a target set by the Ministry of Economy, Trade and Industry.
Panasonic plans to use the additional time to finalize a partnership with a European battery‑recycling firm and to pilot a next‑generation high‑energy‑density cell. Stakeholders will watch the company’s next earnings release for details on revised capital‑expenditure plans and any new OEM commitments. The Ministry is expected to publish an updated roadmap for battery capacity in the second quarter, which could provide further clarity on policy support for delayed projects.