June 8 - Panasonic Holdings said on Monday that it expects to begin mass production of battery cells aimed at data centre applications at a Kansas manufacturing site in the fiscal year 2028, which runs through March 2029.
The company provided further detail on how it will deploy previously announced capital for AI infrastructure across its business units. Of a 500 billion yen investment earmarked for AI infrastructure spanning fiscal years 2026 to 2028, Panasonic said it would direct about 350 billion yen to its Energy unit - the division that supplies Tesla - while allocating 150 billion yen to its Industry segment.
In addition to the planned U.S. plant, Panasonic Energy confirmed plans to construct a third production facility in Mexico. Mass production at that Mexican plant is scheduled for the fiscal year 2028.
Management laid out sales ambitions for data centre-related energy storage. Panasonic Energy CEO Kazuo Tadanobu said the unit is targeting 950 billion yen in sales from those systems in the 2028 financial year and described that figure as a "minimum commitment." He added that the business would aim to raise sales to more than 1 trillion yen.
The company included an exchange-rate reference in its release: $1 = 160.1900 yen.
Context and implications
Panasonic's plan links capital allocation and factory construction to a focused push into energy storage for data centres. Shifting the majority of the 500 billion yen AI-infrastructure fund to the Energy unit - which already supplies electric-vehicle batteries to Tesla - signals a strategic emphasis on utility-scale and data-centre storage opportunities. The simultaneous schedule for U.S. and Mexican mass-production starts in fiscal 2028 suggests the company expects demand or strategic need for expanded manufacturing capacity by that timeframe.
What management is saying
CEO Kazuo Tadanobu framed the 950 billion yen sales target for data-centre energy systems as a floor rather than a ceiling, explicitly stating the unit will aim to exceed 1 trillion yen in the 2028 financial year.
Operational notes
- Mass production for data-centre battery cells in Kansas targeted for fiscal 2028 (ending March 2029).
- About 350 billion yen of a 500 billion yen AI infrastructure investment to be allocated to Panasonic's Energy unit; 150 billion yen to the Industry segment.
- A third Panasonic Energy plant in Mexico is planned, with mass production also scheduled for fiscal 2028.