Power battery growth is strong, Panasonic’s fiscal year 2021 net profit increases by 55%

According to the Nikkei Chinese website, the consolidated financial report (international accounting standards) for the fiscal year 2021 (international accounting standards) released by Panasonic Holdings recently ended in March this year.The company’s net profit increased by 55% year-on-year to 255.3 billion yen. Panasonic Holdings’ sales rose 10 percent to 7.3887 trillion yen. The company’s operating profit rose 38 percent to 357.5 billion yen.

Although the high cost of raw materials and logistics has brought a heavy burden, in addition to passing on prices to products and implementing optimization and restructuring, the depreciation of the yen and the appreciation of the dollar have also become favorable factors.

In addition, the auto parts business, which lost money in the previous fiscal year, turned into a profit due to the resumption of auto production and other reasons. In the battery business, operating profit increased by 92% to 64.2 billion yen due to strong purchases of cylindrical batteries for electric vehicles.

It is known that,Panasonic is also considering building a new battery factory in the US, for Tesla. Currently, Panasonic is evaluating several candidate locations, including Oklahoma, due to its proximity to Tesla’s new factory in Texas. Panasonic plans to manufacture a new high-capacity battery at the plant, aiming to start production as early as fiscal 2024. In addition, Panasonic is preparing to operate the new plant independently.

The site selection will also take into account subsidies and other support measures from local governments. The final decision on whether to build a factory will depend on the profitability of the new lithium-ion battery, which Panasonic will produce at its plant in Wakayama, Japan, starting in fiscal 2023. Panasonic’s goal is to supply the new battery to Tesla’s CyberTruck pickup truck and other vehicles. In addition, Panasonic is also looking to strengthen its high-end model (battery) business in Europe and the United States.

In fiscal 2022 (ending March 2023), Panasonic’s net profit is expected to increase by 2% year-on-year to 260 billion yen, and operating profit will increase by 1% to 360 billion yen.