Japanese battery manufacturer Panasonic Energy forecast a 39pc jump in energy segment operating profit for fiscal 2026 ending next March.
It is targeting segment operating profit of ¥167bn ($1.1bn) for the 2026 fiscal year that began this past April, the company said.
It reported a 35pc increase in operating profit from its energy segment in fiscal year 2025 ended in March, reaching ¥120bn, despite a 5pc decline in sales revenue to ¥873bn.
Its energy segment serves the in-vehicle, industrial, and consumer markets, supplying battery cells to customers including Tesla, Harbinger, and those from generative artificial intelligence data centers.
Panasonic expects its Inflation Reduction Act (IRA)-compliance and tariff-free status to boost market share in the US.
"Customers using battery packs from China may face challenges due to IRA non-compliance or tariffs," chief financial officer Akira Waniko said. "We comply fully with the IRA and manufacture in the US, so we may be replacing some of those battery packs."
In fiscal year 2025, the company produced 46GWh of IRA-eligible battery cells in its US factories, up from 37.2GWh the previous year.
Panasonic identified its automotive battery business as a priority investment area, with ¥501bn invested in fiscal year 2025 and a projected ¥396bn for fiscal year 2026.
Energy storage system sales rose in the industrial and consumer segment in the last fiscal year, while in-vehicle sales fell because of lower demand for Japan-made battery cells and price adjustments reflecting reduced material costs, according to the company.
