Panasonic Corp is in talks with about 10 automakers to supply lithium-ion batteries as demand for energy-efficient vehicles grows, following its planned purchase of rechargeable-battery maker Sanyo Electric Co.
The discussions include companies from the US, India, Europe and Japan, Naoto Noguchi, president of Panasonic’s battery unit, said yesterday in an interview in Osaka, where the group is based. He declined to identify the partners.
The world’s largest plasma television maker offered ¥403 billion (US$4.6 billion) to buy control of Sanyo and plans to invest ¥123 billion tripling production of lithium-ion rechargeable batteries by October 2011. The company estimates the global lithium-ion battery market will increase fivefold by 2018 from this year.
“If demand continues to grow, we have concerns that production capacity might be insufficient,” Noguchi said.
An increase in Japanese electric cars would “make this an issue around 2012 or 2015,” he said.
Automakers are shifting to develop electric cars and hybrid plug-in models that use lithium-ion cells, which are lighter and more powerful than nickel-metal hydride batteries used in most hybrids today.
Toyota Motor Corp, the maker of the world’s most popular hybrid model Prius, plans to build a plug-in model for retail buyers in 2012. General Motors Co intends to make as 60,000 Chevrolet Volt plug-in electric cars annually starting next November.
Nissan Motor Co chief executive officer Carlos Ghosn said electric cars would comprise at least 10 percent of global demand by 2020, assuming oil costs more than US$70 a barrel.
Electric vehicles will comprise 20 percent of the “eco-friendly” car market by 2018, 58-year-old Noguchi said.
Panasonic may expand existing plants or build new ones in conjunction with Sanyo, Noguchi said. The 91-year-old company’s newest battery factory, in Osaka, started making electrodes of lithium-ion batteries in October. The plant will produce 25 million battery cells a month from April, with capacity doubling by October 2011, it said last year.
Panasonic is strengthening energy-related businesses such as lithium-ion batteries as television sales growth slows because of intensified competition with South-Korea’s Samsung Electronics Co.
The electronics maker estimates the global lithium-ion battery market will rise to ¥3.2 trillion by 2018, from ¥600 billion this year, driven by expansion of environment-friendly vehicles, power storage systems and mobile electronics such as notebook personal computers.
Last week, Panasonic obtained conditional approval from the US’ Federal Trade Commission to purchase Sanyo, completing clearance of antitrust regulations in 11 nations. Its public offer for Sanyo shares is scheduled to end on Wednesday.
Panasonic may cut its stake in a battery-making venture with Toyota to receive Chinese antitrust approval for the purchase of Sanyo, the company said last month. Panasonic EV Energy Co., whose 60 percent stake is owned by Toyota, makes nickel-hydrogen batteries for hybrid models. Panasonic must reduce its holding in the venture to 19.5 percent from 40 percent, China’s Ministry of Commerce said in October.
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