The company is ramping up battery production in North America as AI-driven data centres fuel demand for advanced energy storage systems.
Panasonic Holdings is expanding its presence in the fast-growing AI infrastructure market with plans to manufacture battery cells designed for data centre applications in North America.
The company announced that large-scale production of these batteries will begin at its Kansas facility in the United States during fiscal year 2028, which runs through March 2029. The move is part of Panasonic’s broader strategy to capitalize on rising demand for power and energy storage solutions driven by the rapid growth of artificial intelligence and data centres.
To support this initiative, Panasonic will allocate approximately 350 billion yen from its previously announced 500 billion yen investment earmarked for AI-related infrastructure between fiscal 2026 and 2028. The majority of this funding will be directed toward Panasonic Energy, the group’s battery business and a key supplier to electric vehicle maker Tesla. The remaining 150 billion yen will be invested in Panasonic’s Industry segment.
The company is also planning to strengthen its manufacturing footprint in North America through a third battery plant in Mexico. Mass production at the facility is expected to commence during fiscal year 2028, further expanding Panasonic Energy’s production capacity.
According to Panasonic Energy CEO Kazuo Tadanobu, the company’s target of 950 billion yen in sales from data centre-related energy storage systems in fiscal 2028 represents only a baseline commitment. He indicated that the business aims to exceed the 1 trillion yen mark as demand for AI-driven infrastructure continues to grow.
The investments highlight Panasonic’s efforts to diversify beyond its traditional battery markets and position itself as a major supplier of energy storage technologies for next-generation data centres, where reliable power systems are becoming increasingly critical to support AI workloads.
