Overall, the automotive cylindrical battery business is profitable.
After a really challenging second quarter of 2020, the third quarter turned out to be relatively good for Panasonic. Despite the company noting a noticeable 15% decrease of revenues, profits and net income improved year-over-year.
To us, the most important thing is that the EV battery business is expanding and delivers profits.
Panasonic Q3 2020 results
Let’s take a look at the general results first:
Our focus is on the Automotive category, which includes lithium-ion batteries for xEVs. The overall result was 3% lower than a year ago, but the sales of automotive batteries increased and the segment was profitable.
The Automotive Batteries subcategory shows increased sales, lowered costs and overall profitability of cylindrical battery business (both at the Tesla Gigafactory in Nevada and in Japan).
Panasonic supplies Tesla with:
Unfortunately, as usual, there are no details about the xEV battery business unit, but we are optimistic about the future of electrification.
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