Achieving Decarbonization
Achieving Decarbonization
Policy
Our Mission is to “Achieve a society in which the pursuit of happiness and a sustainable environment are harmonized free of conflict,” and therefore, responding to climate change, an urgent issue common to all humankind, is our most important challenge. To address this challenge, we will work to increase avoided CO2 emissions (when our products are used by end-users, mainly in the in-vehicle business) and reduce CO2 emissions during battery production (from raw material procurement to product completion at our factories). By increasing our environmental contribution and reducing our environmental impact, we are working together as a Group and in collaboration with our stakeholders to maximize the value we provide.
Policy
Our Mission is to “Achieve a society in which the pursuit of happiness and a sustainable environment are harmonized free of conflict,” and therefore, responding to climate change, an urgent issue common to all humankind, is our most important challenge. To address this challenge, we will work to increase avoided CO2 emissions (when our products are used by end-users, mainly in the in-vehicle business) and reduce CO2 emissions during battery production (from raw material procurement to product completion at our factories). By increasing our environmental contribution and reducing our environmental impact, we are working together as a Group and in collaboration with our stakeholders to maximize the value we provide.
Increasing avoided CO2 emissions
Contribution to the environment through our products
Since the introduction of lithium-ion batteries for in-vehicle use into the market in 2008, we have supported the shift from gasoline-powered vehicles to electric vehicles (EVs) by greatly extending the driving range per charge through tireless technological innovation. To date, we have supplied batteries for a cumulative total of 3 million EVs. In addition to the proliferation of electrically assisted bicycles powered by our battery packs, the replacement of gasoline-powered vehicles with EVs powered by our batteries avoided CO2 emissions of approximately 12 million tons in fiscal 2024.
By contributing to the environment through our products, including the electrification of mobility, we are targeting avoided CO2 emissions of around 60 million tons in fiscal 2031 (roughly four times the fiscal 2023 level).
To achieve this goal, we will increase our production capacity for automotive batteries and expand our products and services into the field of construction machinery, where electrification has not yet progressed due to the need for higher output and longer operation time compared to automotive batteries. Furthermore, our efforts will be extended to the aerospace sector, where both high output power and weight reduction are required.
Increasing contribution from the spread of EVs and electrified equipment
Increasing avoided CO2 emissions
Contribution to the environment through our products
Since the introduction of lithium-ion batteries for in-vehicle use into the market in 2008, we have supported the shift from gasoline-powered vehicles to electric vehicles (EVs) by greatly extending the driving range per charge through tireless technological innovation. To date, we have supplied batteries for a cumulative total of 3 million EVs. In addition to the proliferation of electrically assisted bicycles powered by our battery packs, the replacement of gasoline-powered vehicles with EVs powered by our batteries avoided CO2 emissions of approximately 12 million tons in fiscal 2024.
By contributing to the environment through our products, including the electrification of mobility, we are targeting avoided CO2 emissions of around 60 million tons in fiscal 2031 (roughly four times the fiscal 2023 level).
To achieve this goal, we will increase our production capacity for automotive batteries and expand our products and services into the field of construction machinery, where electrification has not yet progressed due to the need for higher output and longer operation time compared to automotive batteries. Furthermore, our efforts will be extended to the aerospace sector, where both high output power and weight reduction are required.
Increasing contribution from the spread of EVs and electrified equipment
Reducing CO2 emissions during battery production
Initiatives to reduce CO2 emissions at Panasonic Energy
In addition to helping reduce CO2 emissions in society through our business, we are working to reduce our own environmental impact by both introducing renewable energy and conserving energy.
To introduce renewable energy, we promote its use through photovoltaic power generation systems, energy storage devices, hydrogen fuel cells, 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.
Launched in fiscal 2024, the Nishikinohama Factory aims to achieve manufacturing in harmony with the environment, making maximum use of photovoltaic-powered renewable energy and procuring environmental value to achieve virtually zero CO2 emissions from when the factory begins operations.
In addition, the factory has adopted a new method of installing photovoltaic power generation throughout the entire rooftop. That eliminates the need for significant modifications to the factory’s substation, reducing construction costs and shortening the construction period. As a result of our highly evaluated efforts, the company won the Minister of Economy, Trade and Industry Award in the “Introduction Activity Category” of the fiscal 2024 New Energy Award sponsored by the New Energy Foundation (jointly with FD Corporation and Panasonic Holdings).
At the Tokushima Factory, which has achieved virtually zero CO2 emissions since 2023, we have launched a demonstration test to install a storage battery container that utilizes reused batteries. Specifically, used batteries collected from the data center are reused and utilized as modules for high-voltage systems, thereby storing electricity generated by solar panels to power lighting and other devices at night.
In addition to installing on-site photovoltaic power generation at our sites, we are actively promoting off-site power purchase agreements (PPAs). The newly concluded off-site PPA for onshore wind power generation will encourage the use of renewable energy during outside daytime hours. Together with the photovoltaic off-site PPA that were installed in the last fiscal year, we have converted approximately 15% of our domestic electricity use to renewable energy.
As a further initiative, we will continue to conduct demonstration tests of electricity and heat supply to the factory using pure hydrogen fuel cells at Panasonic Energy Wuxi and introduce pure hydrogen fuel cells and storage battery systems at the Nishikinohama Factory. We plan to continue accelerating efficient and clean manufacturing through energy management of the entire factory.
Through these efforts and the use of environmental values such as non-fossil certificates and CO2 credits, all domestic sites have achieved virtually zero CO2 emissions*1 as of September 2024, bringing the total to 17 sites in Japan and overseas. In addition, the ratio of renewable energy to electric power is approximately 32%. The achievement of zero CO2 emissions at these factories has been verified by a third-party organization*2.
*1 : Zero-CO2 factory: Factories that have achieved virtually zero CO2 emissions by conserving energy, introducing renewable energy, and using credits, etc.
*2 : Implementation of Moriguchi Head Office, Wakayama Factory, and Panasonic Energy Kaizuka is scheduled to be completed by the end of fiscal 2025.
Achieved zero-CO2 factory*1 status at 17 global sites, including all sites in Japan (as of September 2024)
Panasonic Energy’s battery manufacturing process consumes a large amount of energy through the use of drying and air conditioning equipment. For this reason, we are actively promoting energy conservation initiatives. To continue existing efforts, we include optimizing HVAC controls, reducing loss (air, steam, and pumps), and improving visualization systems. In the context of manufacturing innovation, we are promoting various initiatives, such as the innovation of production and manufacturing methods, fuel electrification, and upgrading of high-efficiency equipment. Furthermore, to maximize the potential of energy-saving activities, we are strengthening inter-departmental cooperation within the factory.
As one of these initiatives, Panasonic Energy Kaizuka, one of our automotive cylindrical Li-ion battery production sites, is implementing the “Energy Minimum Production Promotion.” We re-established a cross-departmental promotion system and launched an initiative to both improve production efficiency and reduce CO2 emissions. As a result, more than 50 energy-saving proposals were collected annually, enabling us to improve productivity and reduce CO2 emissions. Since this initiative won the Gold Award in the Environmental Category of the Panasonic Manufacturing Awards in fiscal 2024, we expect to expand it to other factories.
In fiscal 2024, Panasonic Energy established a CO2 Subcommittee and launched an initiative to share expertise on energy conservation initiatives within the Company and to standardize related activities. From each factory, energy conservation activity staffs gather to share information on energy conservation efforts at their factories, introduce the latest energy conservation technologies, and come up with ideas for resolving problems. We will also discuss the visualization of energy use and fuel electrification and promote initiatives centered on energy conservation diagnostics in the future.
Furthermore, we also share examples of energy conservation efforts and issues at each manufacturing site through commendation and reward systems, such as the Environmental Commendation System.
We will continue to focus on the above initiatives to achieve virtually zero CO2 emissions at all of our global manufacturing sites by fiscal 2029.
Initiatives to reduce CO2 emissions upstream in the supply chain
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.
1. Initiatives with suppliers
We are working to reduce CO2 emissions in cooperation with suppliers across all processes involving the materials used in our company, including resource mining, raw material processing, and distribution. Specifically, we are building a system to reduce CO2 emissions in cooperation with our suppliers, who have gained an accurate understanding of our policy toward fiscal 2031 through annual partners’ meetings and other forums. In fiscal 2024, we have determined reduction targets for parts and materials that have a high impact on the carbon footprint per unit volume of batteries, and we are currently discussing reduction initiatives with our suppliers.
In addition, 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 to meet our product specifications and quality standards to establish an integrated graphite production business in North America. 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.
Furthermore, as part of efforts to increase the local procurement ratio of materials, we signed a long-term supply agreement with H&T Recharge for battery exterior cans. Given that H&T has been a partner in supplying exterior cans for Li-ion battery production to our Nevada Factory in the U.S., H&T will, in accordance with the agreement, also begin supplying equipment to our Kansas Factory, which is scheduled to begin operations in fiscal 2025.
In other efforts to reduce our carbon footprint going forward, we are looking at resource mining and raw material processing, especially nickel and lithium, which are important minerals. Here, we will identify suppliers with low CO2 emissions, such as those that employ a high percentage of renewable energy, and position them as strategic procurement partners over the medium and long terms. We will also work together with those suppliers to promote the introduction of renewable energy sources, such as photovoltaic and wind power, the use of EV trucks in mines, the use of recycled materials, the development of low-CO2-emission processes, the reduction of energy use, and tree planting activities. At the same time, we will encourage the governments of the countries concerned to offer incentives.
Reducing CO2 emissions during battery production
Initiatives to reduce CO2 emissions at Panasonic Energy
In addition to helping reduce CO2 emissions in society through our business, we are working to reduce our own environmental impact by both introducing renewable energy and conserving energy.
To introduce renewable energy, we promote its use through photovoltaic power generation systems, energy storage devices, hydrogen fuel cells, 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.
Launched in fiscal 2024, the Nishikinohama Factory aims to achieve manufacturing in harmony with the environment, making maximum use of photovoltaic-powered renewable energy and procuring environmental value to achieve virtually zero CO2 emissions from when the factory begins operations.
In addition, the factory has adopted a new method of installing photovoltaic power generation throughout the entire rooftop. That eliminates the need for significant modifications to the factory’s substation, reducing construction costs and shortening the construction period. As a result of our highly evaluated efforts, the company won the Minister of Economy, Trade and Industry Award in the “Introduction Activity Category” of the fiscal 2024 New Energy Award sponsored by the New Energy Foundation (jointly with FD Corporation and Panasonic Holdings).
At the Tokushima Factory, which has achieved virtually zero CO2 emissions since 2023, we have launched a demonstration test to install a storage battery container that utilizes reused batteries. Specifically, used batteries collected from the data center are reused and utilized as modules for high-voltage systems, thereby storing electricity generated by solar panels to power lighting and other devices at night.
In addition to installing on-site photovoltaic power generation at our sites, we are actively promoting off-site power purchase agreements (PPAs). The newly concluded off-site PPA for onshore wind power generation will encourage the use of renewable energy during outside daytime hours. Together with the photovoltaic off-site PPA that were installed in the last fiscal year, we have converted approximately 15% of our domestic electricity use to renewable energy.
As a further initiative, we will continue to conduct demonstration tests of electricity and heat supply to the factory using pure hydrogen fuel cells at Panasonic Energy Wuxi and introduce pure hydrogen fuel cells and storage battery systems at the Nishikinohama Factory. We plan to continue accelerating efficient and clean manufacturing through energy management of the entire factory.
Through these efforts and the use of environmental values such as non-fossil certificates and CO2 credits, all domestic sites have achieved virtually zero CO2 emissions*1 as of September 2024, bringing the total to 17 sites in Japan and overseas. In addition, the ratio of renewable energy to electric power is approximately 32%. The achievement of zero CO2 emissions at these factories has been verified by a third-party organization*2.
*1 : Zero-CO2 factory: Factories that have achieved virtually zero CO2 emissions by conserving energy, introducing renewable energy, and using credits, etc.
*2 : Implementation of Moriguchi Head Office, Wakayama Factory, and Panasonic Energy Kaizuka is scheduled to be completed by the end of fiscal 2025.
Achieved zero-CO2 factory*1 status at 17 global sites, including all sites in Japan (as of September 2024)
Panasonic Energy’s battery manufacturing process consumes a large amount of energy through the use of drying and air conditioning equipment. For this reason, we are actively promoting energy conservation initiatives. To continue existing efforts, we include optimizing HVAC controls, reducing loss (air, steam, and pumps), and improving visualization systems. In the context of manufacturing innovation, we are promoting various initiatives, such as the innovation of production and manufacturing methods, fuel electrification, and upgrading of high-efficiency equipment. Furthermore, to maximize the potential of energy-saving activities, we are strengthening inter-departmental cooperation within the factory.
As one of these initiatives, Panasonic Energy Kaizuka, one of our automotive cylindrical Li-ion battery production sites, is implementing the “Energy Minimum Production Promotion.” We re-established a cross-departmental promotion system and launched an initiative to both improve production efficiency and reduce CO2 emissions. As a result, more than 50 energy-saving proposals were collected annually, enabling us to improve productivity and reduce CO2 emissions. Since this initiative won the Gold Award in the Environmental Category of the Panasonic Manufacturing Awards in fiscal 2024, we expect to expand it to other factories.
In fiscal 2024, Panasonic Energy established a CO2 Subcommittee and launched an initiative to share expertise on energy conservation initiatives within the Company and to standardize related activities. From each factory, energy conservation activity staffs gather to share information on energy conservation efforts at their factories, introduce the latest energy conservation technologies, and come up with ideas for resolving problems. We will also discuss the visualization of energy use and fuel electrification and promote initiatives centered on energy conservation diagnostics in the future.
Furthermore, we also share examples of energy conservation efforts and issues at each manufacturing site through commendation and reward systems, such as the Environmental Commendation System.
We will continue to focus on the above initiatives to achieve virtually zero CO2 emissions at all of our global manufacturing sites by fiscal 2029.
Initiatives to reduce CO2 emissions upstream in the supply chain
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.
1. Initiatives with suppliers
We are working to reduce CO2 emissions in cooperation with suppliers across all processes involving the materials used in our company, including resource mining, raw material processing, and distribution. Specifically, we are building a system to reduce CO2 emissions in cooperation with our suppliers, who have gained an accurate understanding of our policy toward fiscal 2031 through annual partners’ meetings and other forums. In fiscal 2024, we have determined reduction targets for parts and materials that have a high impact on the carbon footprint per unit volume of batteries, and we are currently discussing reduction initiatives with our suppliers.
In addition, 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 to meet our product specifications and quality standards to establish an integrated graphite production business in North America. 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.
Furthermore, as part of efforts to increase the local procurement ratio of materials, we signed a long-term supply agreement with H&T Recharge for battery exterior cans. Given that H&T has been a partner in supplying exterior cans for Li-ion battery production to our Nevada Factory in the U.S., H&T will, in accordance with the agreement, also begin supplying equipment to our Kansas Factory, which is scheduled to begin operations in fiscal 2025.
In other efforts to reduce our carbon footprint going forward, we are looking at resource mining and raw material processing, especially nickel and lithium, which are important minerals. Here, we will identify suppliers with low CO2 emissions, such as those that employ a high percentage of renewable energy, and position them as strategic procurement partners over the medium and long terms. We will also work together with those suppliers to promote the introduction of renewable energy sources, such as photovoltaic and wind power, the use of EV trucks in mines, the use of recycled materials, the development of low-CO2-emission processes, the reduction of energy use, and tree planting activities. At the same time, we will encourage the governments of the countries concerned to offer incentives.
Achieving Decarbonization
Environmental Management System
Realizing a Circular Society
Achieving Decarbonization
Environmental Management System
Realizing a Circular Society
