Panasonic reportedly plans to invest 600 billion yen ($4.9 billion) in areas such as electric vehicle batteries, supply chain software and hydrogen energy, which the company sees as central to its growth.
According to a statement issued on April 1, Panasonic will invest 400 billion yen in "growth areas" such as electric vehicle batteries in fiscal years 2022-2024 (April 2022-March 2024), and in "technology pillars" such as hydrogen energy. field” to invest 200 billion yen and plan to achieve a cumulative operating profit of 1.5 trillion yen.
Panasonic is looking for new avenues for growth. Former chief executive Kazuhiro Tsuga of Panasonic, once a global leader in consumer electronics, spent nearly nine years spinning off money-losing businesses such as plasma TVs and turning it into a lean, no-loss-making company. In April last year, Tsuga handed over the reins of the company to Yuki Kusumi.
Kusumi now faces the challenge of leading Panasonic on a path of sustained growth. Over the past year, Kusumi has built Panasonic into a holding company. He believes that under such a structure, it will be easier for Panasonic to decide where to invest for long-term growth.
Kusumi said in an interview last June that he plans to spend two years "refining and strengthening" the rest of Panasonic's business. During this period, improving efficiency will improve the company's ability to make a profit, which will lead to hundreds of billions of yen in funds, which will be used for new development measures such as corporate mergers and acquisitions.
One of Panasonic's bullish growth areas is the electric vehicle battery business. Currently, Panasonic is negotiating the location of a U.S. factory where it plans to produce 4680 batteries for Tesla. It is reported that the multi-billion-dollar factory will be operational as soon as 2024 and may supply 4680 batteries to other automakers.
Panasonic also sees an opportunity in supply chain software. In 2021, Panasonic bought Blue Yonder, an artificial intelligence software developer, for $7.1 billion. Blue Yonder makes supply chain management software and uses artificial intelligence to forecast product demand. Panasonic plans to combine Blue Yonder's software with its hardware such as cameras and sensors to provide customers with a higher-margin solution.
