en.Wedoany.com Reported - On June 8, Panasonic Group disclosed at its Tokyo Investor Day event that it will invest 350 billion yen (approximately $2 billion) to expand battery production capacity, targeting new demand driven by the anticipated growth of AI data centers. The company also unveiled a roadmap to accelerate supply chain development in Japan and North America.
Mexico has been designated by Panasonic as the regional manufacturing hub for battery modules used in data centers. Panasonic Energy plans to build a second battery module manufacturing base in the country, with mass production expected to begin in the fiscal year ending March 2027. A third battery module manufacturing base has also been proposed, with production slated to start in the fiscal year ending March 2028. Panasonic did not disclose the specific investment amount or exact location of the factory in Mexico. The company already operates a plant in General Escobedo, Nuevo León, Mexico, through Panasonic Energy Mexico.
The Mexico base is part of the North American supply chain: battery cells are produced in Kansas, USA, while modules are assembled in Mexico. Panasonic also plans to increase production at its Osaka facility in Japan, converting one of its former automotive business production lines into a lithium-ion battery and supercapacitor production line.
During the presentation to investors, Panasonic unveiled several new products targeting AI data center demand: a next-generation capacitor backup power unit that releases electrical pulses to stabilize voltage during rapid load fluctuations; a battery backup power unit compatible with the high-voltage direct current architecture promoted by data center developers; and a development plan for high-power lithium-ion battery cells.
In terms of financial targets, Panasonic plans to triple its revenue from data center energy storage systems by fiscal 2029, aiming for sales close to 1 trillion yen (approximately $6.25 billion). The company also seeks to achieve a return on invested capital of over 20% for its energy solutions division.
Prior to this expansion, Panasonic announced in 2025 that it would exit the U.S. residential solar and residential energy storage businesses, but pledged to provide warranty and installation support for existing and ongoing projects, while continuing to invest in electric vehicle battery manufacturing in Kansas.
Panasonic is also advancing grid-scale battery energy storage system technology. In March 2026, the company announced it had completed cybersecurity testing for the monitoring of large-scale battery energy storage systems.
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