Japanese global electronics company Panasonic is planning to invest JPY50 billion (USD415.2 million) to construct an automotive lithium-ion battery plant in China, according to a report on the Nikkei news website. The plant, to be located in the northeastern city of Dalian, Liaoning province, will manufacture batteries for electric vehicles (EV) and plug-in hybrid EVs. Panasonic expects operations to begin at the plant in 2017 through a joint venture with a Chinese partner. The annual capacity of the plant is projected at nearly 200,000 battery units.
Significance: The current development is Panasonic's first dedicated plant to produce EV batteries in China and will help the company to expand its footing in the industry. The move is also in line with the Chinese government's efforts to encourage sales of environmentally friendly vehicles. The company currently manufactures personal computer batteries in China. In September 2015, Panasonic closed its lithium-ion battery plant in Beijing. With the Beijing plant's closure, Panasonic revealed that it aims to strengthen its production of lithium-ion batteries and other components for automobiles including making lithium-ion batteries for EV manufacturer Tesla. Overall, Panasonic said it will invest CNY60 billion (USD499.83 million) in China to strengthen its automotive business.
