Local Sourcing Crucial to Panasonic's EV Battery Innovation

The International Energy Agency (IEA) anticipates a 25% growth in electric vehicle (EV) sales by 2025, but the role of batteries remains crucial in facilitating this expansion.

Among the industry's leaders is Panasonic, with its batteries powering more than three million EVs as of December 2023.

Panasonic's strategy includes harnessing its century-long expertise to not only decarbonise transportation but also revolutionise battery manufacturing processes.

A lithium-ion leadership

Panasonic is a prominent producer of lithium-ion batteries in North America, supplying millions of EVs.

The transport sector accounts for approximately 25% of global CO₂ emissions, according to the IEA, making the transition to EVs essential for achieving global decarbonisation targets. Panasonic's battery division plays a critical role in this evolution.

"In addition to reducing emissions from Panasonic’s own operations, this ‘reduction contribution’ also advances Panasonic’s commitment to fight climate change," Allan Swan, CEO of Panasonic Energy of North America, tells the Panasonic website.

"The automotive battery business is the flagship of the Panasonic Group’s efforts to confront climate change issues."

Scaling up in US electrification

Allan oversees operations at the Tesla Gigafactory in Nevada and is leading the development of Panasonic’s upcoming battery facility in De Soto, Kansas, poised to be the world’s largest. Ground-breaking took place in November 2022, with production commencing in 2025.

"The shift to EVs requires training the next generation to invent, design and build the battery technology that will power our future," adds Allan.

"We hope to inspire the young people who will create a more vibrant and sustainable future, and we are committed to helping them achieve their goals."

The Kansas plant will focus on manufacturing 2170 cylindrical lithium-ion batteries, favoured by automotive manufacturers for their energy density, safety and performance.

"What we do here today, will impact your tomorrow," Allan emphasises.

Why North America matters

The expansion into North America is aligned with market opportunities and sustainability objectives.

"In North America, the shift to EVs is expected to accelerate against the backdrop of stricter environmental regulations and consumer demand for high-performing, fun-to-drive electric vehicles," Allan continues.

He highlights that the US market's demand for long-distance travel makes high-capacity battery technology particularly valuable, which Panasonic views as a competitive edge.

Panasonic values the local sourcing of materials, not only for robustness but also sustainability.

Allan goes on: “North America offers local sourcing of raw materials mined and processed in a responsible manner, often using renewable energy and other sustainability best practices.”

This localisation helps reduce transport emissions, shorten supply chains and solidify regional EV infrastructure.

A net-zero vision for battery manufacturing

The production of EV batteries is associated with a substantial carbon footprint, with nearly 90% of emissions arising during material extraction, processing and logistics. Panasonic strives to address this issue directly.

"Our Kansas plant is designed to operate as a Panasonic-designated net zero facility," says Allan. 

"We will minimise the amount of electricity needed for production and all aspects, from wiring to machinery and equipment, will support CO₂ emissions reduction."

Panasonic plans to completely switch to local renewable energy within the next decade and is optimising its entire supply chain to lower its Carbon Footprint of Products (CFP).

Strategic partnerships for circular supply chains

Panasonic's long-term strategy involves forging alliances with companies that align with its environmental targets.

One notable collaboration is with Redwood Materials, a US-based battery recycling company.

“Our partnership with Redwood Materials began in 2019 and together we are recycling waste materials from our Nevada plant,” Allan notes.

Panasonic has secured agreements for recycled cathode materials and copper foil, crucial components in lithium-ion batteries. Other notable sourcing partnerships are with:

• Sila Nanotechnologies (US): Silicon anode materials
• Novonix (US): Artificial graphite with reduced CO₂ emissions
• Nouveau Monde Graphite (Canada): Renewable-powered graphite for anodes

"By procuring Canadian materials for our US plants, we can shorten the supply chain, significantly reducing distribution-related CO₂ emissions," Allan tells Panasonic.

"They are like-minded companies that are sincerely facing the challenge of reducing CO₂ emissions."

The Panasonic commitment

All these initiatives form part of Panasonic GREEN IMPACT, the company’s global programme aimed at reducing 93 million tonnes of CO₂ emissions by early 2031.

Battery production and EV uptake are vital elements in realising this goal.

“What I find very exciting about working at Panasonic is the sense that we are taking on the challenge of combating global environmental issues like climate change,” concludes Allan.

“This is true not only for me but for all Group employees: we’re all committed to making products that help in that fight.”