Panasonic and Mazda announced they have agreed to enter into discussions on establishing a medium- to long-term partnership for automotive batteries with round cells. The tentative language suits Mazda’s relatively relaxed approach towards electrification, yet the timeline also fits.

Mazda said it would commence “concrete discussions” with a view toward Panasonic Energy supplying the carmaker with cylindrical lithium-ion batteries manufactured at Panasonic’s plants in Japan and North America. No mention was made of the format, but Mazda would join carmakers such as Stellantis, BMW, Lucid Motor, and, of course, Tesla relying on cells made by Panasonic.

Mazda plans to install these batteries in EVs scheduled to be launched in the latter half of the 2020 decade, in line with Mazda’s EV strategy until 2030. In November 2022, Mazda raised its sales target for all-electric cars to a still relatively modest 40% of total sales by 2030, up from 25%.

Seeking for partnerships

At the time, Mazda was also considering investing in battery production itself but now appears to have swung onto a path of partnership, a strategy the company is employing across all EV components. Mazda already has agreements with seven partners to develop parts for electric cars.

In addition, the company has a supply deal with the battery manufacturer Envision AESC, but only for a limited period between 2025 and 2027. The potential partnership with Panasonic would likely go beyond and start around 2028 when Mazda considers phase three of its electrification plan.

Masahiro Moro, Director and Senior Managing Executive Officer of Mazda, who reportedly takes over from CEO Akira Marumoto this month, hinted as much today. He said Mazda was working with its partners in three phases to respond flexibly to changes in regulatory trends, consumer needs, and other areas.

“As part of our electrification initiatives,” Moro declared, “Mazda is working with its partners in three phases to flexibly respond to changes in regulatory trends, consumer needs, and other areas. We are delighted to collaborate with Panasonic Energy, which has been a pioneer in automotive lithium-ion batteries, developing high-quality products.”

U.S.A first

In May 2023, Panasonic set new targets to increase its annual EV battery cell production to 200 GWh by March 2031. That would be around four times what it currently produces. To do so, Panasonic is focusing on production in North America.

This would perfectly suit Mazda. The company is expected to invest in EV production in the USA from 2026 or 2027 to make future EVs eligible for tax credits under the US Inflation Reduction Act. Concrete plans have yet to be announced, but Panasonic is heavily invested in US production.

Moreover, incoming Mazda CEO Moro is credited with pushing sales in North America, where the carmaker already makes 36 % of its business. Moro has been with Mazda for 40 years and led Mazda in Europe from 2004 to 2008. In 2016, he was named CEO of Mazda Motor of America. Not a coincidence, apparently.