Panasonic Corporation would be investing $1.6bn in Tesla’s battery plant in Nevada
Tesla’s gigafactory is provided financial support by the Japanese electronics maker, Panasonic Corporation. President of Osaka-based organization, Kazuhiro Tsuga, said the company would spend up to $1.6bn on a modern battery manufacturing plant with Tesla Motors.
The Asian enterprise expects to develop its future in the automotive electronics sector. Both organizations are jointly financing up to $5bn for gigafactory in Nevada. Panasonic has not revealed the total investment earlier and it would take many years before that plant starts to hum at full steam. The waiting time may prove to be expensive for Panasonic, as it has been struggling to earn money through the manufacturing of lithium ion batteries.
“We are sort of waiting on the demand from Tesla,” Mr. Kazuhiro said in a phone call interview at the CES in recent times. Tesla’s automobile growth projections are huge, but lower prices of gasoline have reduced the total demand of EVs.
The investment in battery manufacturing would turn Panasonic into huge automotive parts supplier benefitting from automobile’s computerization and forecast of global demand for light automobiles in the future.
While its trade show still exhibited many camera and televisions, it also demonstrated its modern electronics for home and cars. Mr. Kazuhiro is taking account of proliferation of small screens in vehicles to compensate for slowdown as far as conventional televisions are concerned. “The car is changing,” he stated. “It is getting to be an electrical object. We have those technologies, so I thought ‘we need to shift our resources to automotive.’ ”
The sales of Panasonic to automotive organizations would probably increase by almost 100% in the upcoming 4 years. It is expected that this financial year would make a contribution of $11 bn (¥1.3 trillion), around 15% of the sales revenue of the company, but would expand to almost one fourth of the revenue later this decade.
Panasonic intends to increase yearly revenue to ¥ 10 trillion by its financial year that ends in March 2019, which has increased from ¥ 8 trillion for its financial year ending in March.
Its automotive business would contribute to more than 50% of the growth, supported by a big agreement with Ford to deliver its screen and electronics system for Sync 3 multimedia feature of the automaker, which would probably be offered with almost all Ford automobiles. Other vehicle companies have also given orders to it.
Panasonic is also manufacturing rear view mirror and electronics utilized in new vehicle security systems that show a picture shot by a rear-facing camera to improve the visibility of the driver.
In other news, Clean Technica has disclosed that Tesla Motors has delivered more than 100,000 Model S cars in the fourth quarter of last year and started to manufacture Powerwall.