Originally developed for notebook computers, Panasonic's cylindrical lithium-ion batteries for automobiles now account for 60%¹ of the Group's overall avoided CO₂ emissions. Leveraging the characteristics of these durable and lightweight cylindrical batteries, Panasonic continually innovates to enhance energy density, safety, and cost-effectiveness. The cylindrical shape of the cell facilitates superior cooling in automotive batteries, making them ideal for fast-charging electric vehicles (EVs) and supporting the global EV market's expansion.

Additionally, in the manufacturing of lithium-ion batteries, we have worked on reducing the use of rare metals, which emit more CO₂ during refinement processing, and completed the development of cobalt-free batteries. This is all part of our commitment to reducing environmental impact while improving product performance and expanding supply.

¹The figure for projected avoided emissions of CO₂ for the entire Panasonic Group for fiscal 2031 is 93 million tons (based on disclosed data from the Panasonic Group Sustainability Management Briefing of July 2022).

Currently, the global EV market is expanding, particularly in North America, with the average annual growth rate from 2021 to 2030 estimated at 35%².

In line with the strong push by North American governments to build up the EV supply chain as part of national policy, the Panasonic Group is expanding its automotive battery business in the United States. Focusing on increasing production capacity and improving investment efficiency, we aim to quadruple our 2022 production capacity for automotive batteries (in terms of total GWh) by 2030.

²The Compound Annual Growth Rate (CAGR) is estimated at 35% (Panasonic’s own projection).

Along with the expansion of our automotive battery business, we are implementing various initiatives at our North American factories to build a supply chain that reduces environmental impact. Entering into long-term contracts to procure recycled materials is one such initiative.

The figure for avoided CO₂ emissions of our automotive battery business, which was 8 million tons in fiscal 2021, will be increased to 21 million tons in fiscal 2025, and further raised to approximately 59 million tons in fiscal 2031, representing a roughly fivefold rise relative to the fiscal 2023 level.

³Avoided CO₂ emissions for our Battery-Equipped Electric Vehicles (BEVs)

Air-to-Water (A2W) is a heat pump water heating system that gathers heat from the atmosphere to produce hot water for circulation within the home. This innovative system offers a more sustainable alternative to traditional heating devices that burn fossil fuels. It is suitable for both new builds and existing homes, providing an eco-friendly option for replacing conventional heating equipment.

In Japan, production of Eco Cute⁴ household A2W heat pump water heaters began in March 2002. By March 2022, cumulative shipments reached 2 million units. This technology not only reduces CO₂ emissions but also maintains heating efficiency even in cold climates. Moreover, products designed for the European market can serve as both heating and cooling devices, making them suitable for various regions.

⁴“Eco Cute” is branding used by Japanese electricity companies and water-heater manufacturers to designate natural refrigerant (CO₂) heat pump water heaters for domestic use.

In Europe, efforts to combat climate change are progressing, and the demand for A2W is increasing year by year. By fiscal 2031, the market is expected to have undergone a dramatic expansion.

In various EU member states, subsidy programs have been introduced in line with the EU's decarbonization policies, accelerating the demand for A2W. Additionally, due to global conflicts, natural gas prices have surged in Europe, prompting a transition from conventional boiler heating to A2W.

The Panasonic Group aims to deliver high-efficiency A2W solutions, particularly in Europe, contributing to the reduction of CO₂ emissions in the region.

To accelerate the growth of its A2W business in Europe, the Panasonic Group is establishing an integrated system for development, manufacturing, and sales within Europe, enhancing its competitiveness in the market.

Moreover, our factory in the Czech Republic is expanding its production facilities to increase A2W production capacity. The goal is to achieve a production capacity of 550,000 units by fiscal 2026, with future plans to reach one million units.

The Panasonic Group is proactively engaged in demonstrating its "RE100" Solution using pure hydrogen fuel cells. This initiative aims to power 100% of our business operations using renewable energy sources.

The "RE100" Solution integrates pure hydrogen fuel cells, solar power generation and storage batteries for storing surplus power. These components work together in an energy management system, allowing coordinated control. By adapting to changes in weather conditions and energy demand, the system ensures an optimal and stable supply of electricity. This approach enables efficient, locally sourced energy consumption, contributing to the realization of a sustainable and environmentally responsible energy ecosystem.