- TOKYO: Japanese electronics maker Panasonic plans to cut half of its domestic factories that make lithium ion batteries and increase production in China by the end of next fiscal year, the Nikkei business daily reported.
Lithium ion batteries are used in electronic devices.
Panasonic has already suspended production at two lithium ion battery factories in Japan and will cancel expansion plans for a new plant, the paper said.
The company plans to ramp up production in China to 50 percent of total lithium ion batteries in three to four years from 10-20 percent currently, the Nikkei said.
Panasonic expects to slash up to 30 percent of production cost to help its battery business — which generates some 300 billion yen ($3.93 billion) in annual sales — compete with Korean companies that are rapidly expanding their market share, the paper reported.