Strong Growth Driven by Data Centre Demand
Panasonic announced that its battery-making energy unit achieved a 47% increase in year-on-year operating profit for the first quarter, fueled by surging investments in artificial intelligence (AI) and the resulting demand for energy storage systems in data centres. Operating profit for the unit, which supplies batteries to leading electric vehicle (EV) manufacturers including Tesla, reached 31.9 billion yen ($215.6 million)[2][3].
Offsetting EV Market Challenges
Despite headwinds such as new U.S. tariffs and the end of EV tax credits, Panasonic's energy division managed to outperform expectations due to the robust performance of data centre-related storage products. Though the company remains cautious about ongoing weakness in EV demand linked to U.S. policy shifts, Panasonic emphasized that demand for energy storage to support the expansion of generative AI applications—such as
ChatGPT—is "growing more than anticipated"[2][3].
- EV battery demand in North America is expected to moderate, with the company revising down its earlier projection of 46 GWh in sales for the upcoming fiscal year. Still, Panasonic anticipates surpassing last year’s 38.1 GWh in North American EV battery sales[3].
- The full-year operating profit forecast for the energy unit is maintained at 167 billion yen, underlining confidence in ongoing data centre-driven growth[2][3].
Corporate Restructuring and Future Outlook
As part of a broader strategy to enhance profitability, Panasonic initiated plans to lay off 10,000 employees and book 130 billion yen in restructuring costs earlier this year. The company remains committed to strengthening its position in the market for advanced battery technologies, a space witnessing fierce competition as AI continues to bolster demand for reliable, large-scale energy storage solutions[2][3].
Generative AI Accelerates Battery Market Shifts
Driven by widespread adoption of generative AI technologies such as
ChatGPT, data centres globally are scaling up their energy storage infrastructure. These trends are creating significant new opportunities for battery manufacturers like Panasonic, even as legacy automotive markets face temporary uncertainties[1][2][3].
