Panasonic Energy has underpinned the shift from gasoline-powered vehicles to electric vehicles (EVs) since we introduced lithium ion batteries to the market for automotive use in 2008. In addition to the shift from gasoline-powered vehicles to EVs equipped with Panasonic Energy batteries, we have propelled the spread of pedelecs with Panasonic Energy battery packs. In fiscal 2024, this resulted in roughly 12 million tons of avoided CO₂ emissions. By working on environmental contribution through products, including the electrification of mobility, we aim to help achieve a reduction of 60 million tons of CO₂ in fiscal 2031 (roughly four times the fiscal 2023 revel) .

Panasonic Energy is working to reduce its own environmental impact by both introducing renewable energy and conserving energy. To introduce renewable energy, we promote its use through photovoltaic power generation systems, wind power generation, energy storage devices, and other means. We are also working to achieve virtually zero CO₂ emissions in our business activities through a combination of various initiatives, including the procurement of 100% renewable energy-derived electricity and environmental value. To conserving energy, we are promoting various initiatives, such as optimizing HVAC controls, reducing loss (air, steam, and pumps), innovation of production and manufacturing methods, fuel electrification, and upgrading of high-efficiency equipment. Through these efforts, the total to 17 sites in Japan and overseas have achieved Zero-CO₂ factory* as of September 2024. We will achieve Zero-CO₂ factory at all of our factories worldwide in fiscal 2029.

Nearly 90% of our CO₂ emissions (carbon footprint) from the production of batteries comes from resource extraction, raw material processing, and logistics prior to the manufacturing process at our company. To achieve our target of halving the carbon footprint of our battery production by fiscal 2031 (vs fiscal 2022), we are collaborating with a wide range of stakeholders, including suppliers, partner from other industries, and research institutes, leveraging their knowledge and experience.

As one of our initiatives, to meet the growing global demand for EVs, we are working to establish a sustainable supply chain to expand the production of automotive batteries, with North America as a key region. Graphite (one of the anode materials for Li-ion batteries) is composed of natural and synthetic graphite. For natural graphite, we signed a memorandum of understanding with Nouveau Monde Graphite of Canada for an offtake agreement (long-term supply contract) in October 2022. Subsequently, we have been developing technology and optimizing processes, In February 2024, we then invested in the company and signed a seven-year off-take agreement. The integrated production of anode materials from mining to production in Canada, which has a high ratio of electricity derived from renewable energy sources (such as hydroelectric power generation), allows for the procurement of anode materials with significantly reduced CO₂ emissions. In addition, we have concluded a long-term supply agreement with NOVONIX, Inc. for synthetic graphite, which is scheduled to be supplied from NOVONIX’s factory in Tennessee, U.S.A., starting in 2025. The continuous graphitization furnace technology developed by NOVONIX is expected to reduce CO₂ emissions during the production of synthetic graphite compared to conventional methods, making it strategically significant by reducing the environmental impact of the supply chain.

We will continue to accelerate efforts toward halving our carbon footprint by fiscal 2031 (compared to fiscal 2022), including the establishment of various partnerships.

In the past, there have been high barriers to the use of recycled materials for the cathode materials and copper foil used as raw materials for batteries, due to concerns with quality and cost. Panasonic Energy is constructing a system for recycling these materials and using them to make new batteries. In 2022, we signed a sales agreement with Redwood Materials, Inc., a US battery recycling company, concerning recycled copper foil and cathode materials for Lithium ion EV batteries. This initiative will not only increase the ratio of recycled materials used, but also help to reduce CO₂ emissions from physical distribution processes and resource extraction by utilizing local procurement.

While plastic is an indispensable material in modern society, its impact on climate change and the challenges it poses as a waste material are driving our efforts to reduce plastic use and recycle resources. As one of our initiatives, we launched dry batteries in “ethical packages” in both Japan in fiscal 2022 and Thailand in fiscal 2023. These packages are designed to reduce packaging materials and eliminate plastics, as products that appeal to the ethical consumption orientation (consumption activities that consider not only the unctional value of products and services but also their ethical value). From 2023, we expanded our lineup to include the rechargeable nickel-metal hydride battery “eneloop” and coin cell batteries* with ethical packaging. We have also accelerated our business globally, starting with the Asia-Pacific region. Furthermore, in September 2023, we received the Japan Star Award (Minister of Economy, Trade and Industry Award). By adopting ethical packaging, we were able to reduce the use of packaging materials that contain plastic by around 38 to 59% compared to conventional products. At the same time, it helped to reduce overall CO₂ emissions over the life cycle of packaging materials, including from raw materials procurement, manufacture, use, and disposal.

*Sold only through certain online shopping websites.