Japanese electronics manufacturer Panasonic Holdings announced Tuesday that its battery manufacturing division is projected to see dramatic profit growth over the next three years, rebounding from recent financial setbacks.
The company’s energy division, which produces batteries for electric vehicle maker Tesla, is forecasted to generate operating profits of 171 billion yen (equivalent to $1.09 billion) by March 2027. This represents a significant jump from the 69.8 billion yen recorded in the fiscal year that recently concluded.
The battery unit faced challenges during the January through March period, recording losses of 3.8 billion yen. These financial difficulties stemmed from several factors including U.S. trade tariffs, expenses related to launching operations at the company’s Kansas manufacturing facility, and reduced sales volume at a production plant in Japan.
