Dive Brief:
- Panasonic Energy will supply EV maker Lucid with lithium-ion batteries as part of a new multi-year sourcing agreement, the companies announced Tuesday.
- The battery maker will produce some of the materials at an existing facility in Japan, as well as from its upcoming facility in De Soto, Kansas.
- The deal and sourcing plan is part of Panasonic's bid to capture more of the U.S. battery market share. The company broke ground on its Kansas facility last month, with mass production expected to begin in March 2025.
Dive Insight:
Lucid has upped its production capacity in recent months, churning out a record quarterly production of 2,282 vehicles in Q3 with a weekly capacity of 300 units, CEO and CTO Peter Rawlinson said on a recent earnings call. The EV maker remains on track to produce 6,000 to 7,000 vehicles this year, and is preparing to begin production on its new SUV model in 2024.
For Panasonic, the deal follows efforts to secure raw mineral supply lines in recent months to then boost battery production capacity. The company signed a memorandum of understanding with Canada-based Nouveau Monde Graphite in October to procure graphite used in lithium-ion batteries.
"With the increased electrification of the automotive market, partnerships with technology-leading EV manufacturers such as Lucid are critical to our mission," Kazuo Tadanobu, president and CEO of Panasonic Energy, said in the Dec. 13 release. "This partnership will help us drive growth of the lithium-ion battery industry and accelerate the world towards a net-zero emissions future."
Other automakers are also pressing ahead with new sourcing partnerships to shore up their critical mineral and battery supply. Over the summer, GM announced a spate of new sourcing partnerships, including a deal with chemical manufacturer Livent for the supply of lithium.
