Panasonic Energy has formally launched a new lithium ion battery R&D facility in Japan to encompass material development, cell design and prototype production.

The September 16 announcement came more than a year after the Panasonic Group said it was shutting down its solar and energy storage business line because it was “no longer the right fit”.

However, the Panasonic Group subsidiary said the new facility, dubbed Energy Innovation Square, will serve as a global hub for mass production of next-generation batteries for automotive and datacenter applications.

The company did not disclose investment costs or production capacity but said the six-floor Osaka facility, spanning 24,500 ft², will incorporate Osaka City’s existing Suminoe Production Development Facility, with a combined workforce of around 800.

Kazuo Tadanobu, CEO of Panasonic Energy, said: “As battery markets and applications evolve, we will continue to respond swiftly and flexibly to customer needs, drawing on our technological expertise and experience. Through innovative battery technologies, we remain committed to contributing to a more sustainable society.”

Batteries International reported last July that Panasonic and GS Yuasa were increasing prices of replacement lead acid batteries for cars in Japan starting in August 2026.

Panasonic blamed its increase on persistently high component prices for automotive lead acid batteries and rising energy and logistics costs due to soaring crude oil prices.

Instability in the Middle East was also cited, with Panasonic saying prices of resins and tin had surged, making the outlook uncertain.