Panasonic Energy Co. Ltd., a subsidiary of the Panasonic Group, has announced a long-term agreement with H&T Recharge, a battery component manufacturer based in Marsberg, Germany.

The agreement aims to bolster Panasonic Energy’s production of safe electric vehicle (EV) batteries by securing the supply of lithium-ion battery cans in North America.

The collaboration between Panasonic Energy and H&T dates back to 2017, with H&T providing approximately 40 GWh of battery can capacity annually to Panasonic Energy’s Nevada facility. The newly inked agreement will expand H&T’s supply to Panasonic Energy’s Kansas facility, set to commence operations by March 2025.

To meet the increased demand, H&T plans to deploy state-of-the-art production lines, enhancing productivity and quality to supply battery cans with an estimated annual capacity of around 30 GWh to the Kansas facility.

Panasonic Energy is committed to meeting the growing global demand for EVs by ramping up the production of EV batteries while enhancing performance, durability, and safety standards. Ensuring safety is paramount, particularly in mitigating thermal runaway incidents during modular installation in EVs. The company designs and manufactures lithium-ion batteries using optimized components, including battery cans, to minimize issues such as cell rupture and ignition.

H&T brings to the table unique capabilities in deep drawing press and tool design, along with decades of experience in high-volume serial can manufacturing. With fully automated key processes in its North American production line concepts, H&T ensures stable and efficient mass production while maintaining consistent quality standards.

This partnership aligns with Panasonic Energy’s strategy to strengthen its supply chains in North America by increasing local procurement of battery components. By establishing a facility in Kansas, H&T aims to reduce both Panasonic Energy’s carbon footprint and transportation costs.

Drawing on its advanced battery technology and expertise, Panasonic Energy is committed to collaborating with diverse partners to drive further development in the global lithium-ion battery industry.