Panasonic's battery unit profit grows 47% y/y in Q1 on AI boom
Profit for the key unit, which makes batteries for Tesla (TSLA.O), opens new tab and other EV makers, rose 47% year-on-year to 31.9 billion yen ($215.6 million).
"Concerns remain over a further slowdown in EV demand due to U.S. tariff policies and termination of IRA 30D tax credit", Panasonic said in a presentation slide, but noted demand for data centre-bound energy storage systems is "growing more than anticipated".
For the full-year that ends in March 2026, the company kept its operating profit forecast for the energy unit at 167 billion yen.
Panasonic Holdings said in May it would cut 10,000 staff and expected to book restructuring costs of 130 billion yen as part of a push to improve group profitability.
The electronics manufacturer said at the time it did not expect to book any restructuring costs in its energy business.
Last week, Panasonic Energy's major customer Tesla warned of fallout from the U.S. government's legislation to cut a $7,500 tax credit for EV buyers.
Panasonic Energy operates a plant in the U.S. state of Nevada that provides batteries to Tesla and earlier this month started, opens new tab production at its second U.S. plant, in Kansas.
It also makes energy storage systems for data centres in its consumer business, which in the April-June quarter saw a rapid rise in demand owing to massive AI-related investments, the company said.
But both auto batteries and consumer energy storage systems would see certain impact from U.S. President Donald Trump's tariffs, it added, without providing the impact forecast in numerical terms.
Panasonic Energy is investing in new battery technologies as it competes with Chinese and South Korean rivals such as CATL (300750.SZ), opens new tab and LG Energy Solution (LGES) (373220.KS), opens new tab in the global EV supply chain.
Last week, LGES warned of slowing demand by early next year due to U.S. tariffs and policy uncertainties after it reported a profit jump for the April-June period.
($1 = 147.9400 yen)
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Close To mark the launch of the Ford Explorer, Lexie Alford became the first person to circumnavigate the globe in an EV. The 18,600-mile, 27-country journey traversed territory as diverse as the Australian outback, the mountains of Bhutan and the Atacama desert. Impressive stuff, but of more relevance to me – and you, I would expect – is how the Explorer will tackle slightly more real-world adventures, such as the traffic-clogged streets of Twickenham, the bumpy moorland roads of Somerset and the relentless roundabouts of Milton Keynes. Now, I doubt I'll get close to Alford's epic quest in terms of accumulated mileage over the coming months, but I will be tackling those more real-world environments – and with enough time behind the wheel hopefully to gain an understanding of what remains a very curious machine. A controversial one, too. This is, as you may recall, the Ford that isn't entirely a Ford: it's built on the Volkswagen Group's MEB electric car platform, as part of a broad deal between the two firms that has helped the Blue Oval expand its EV line-up beyond the larger Mustang Mach-E. That said, Ford says that while it has taken a VW Group platform, it has developed its own vehicle, with its own character. It's also the Explorer that isn't really an Explorer: the name comes from a long-running US market SUV, although one that is both larger and very much not electrically powered. To British buyers not versed in Ford's US lineup, that's possibly more confusing than controversial: certainly Ford attracted less opprobrium for using the name than if they had, say, wheeled out an electric SUV-coupé and called it a Capri. Imagine! Perhaps most contentiously, of course, is that this Explorer is the car that killed the Ford Fiesta: Ford had to convert its Cologne plant, where the Fiesta was built, for EV production. That was a much-questioned decision when announced in 2023, never mind the recent challenges in the EV market. It's not really fair to judge the Explorer by what it is, isn't or represents, though: the role here is to leave all of that to one side and evaluate how good the Explorer is as a car. And the good news is that there's a lot of promise here. For starters, for a boxy SUV the Explorer is really quite well resolved, with some neat design touches. It has already attracted an admiring comment from one of my neighbours, a non-car person who thinks it looks 'really nice'. We're off to a good start, then. It's also deceptive: that boxy styling makes it look bigger in photos than it really is. Anyone who read about the MEB platform and expected the Explorer to be a VW ID 4 with a different badge – an ID Ford, perhaps? – may be surprised to learn it's quite a bit shorter. Inside, the Explorer is notably different from most VW Group models. A few parts will be familiar (we'll get to those in a future report), but the large, vertically mounted 14.6in touchscreen is pure Ford, and it runs Ford's own infotainment system. It can also be angled up and down depending on preference, in doing so giving access to a semi-secret storage cubby. The Explorer is offered with single- and dual-motor layouts, and with two battery sizes. Because I value range above pace, I've chosen the Extended Range Premium RWD, which features a single 282bhp motor and a 77kWh (usable capacity) battery. The official range is 354 miles, with efficiency rated at 3.4mpkWh. As with other MEB cars, it can charge at speeds of up to 135kW, which is decent enough, but plenty of rivals are now faster. If you want an Explorer that charges more quickly, you'll need the dual-motor AWD Extended Range version. Our Premium-spec car is really well equipped, as you would hope for £49,975: outside, there are stylised 20in wheels, matrix LED lights and a large panoramic roof; inside, there are niceties such as heated seats covered with Sensico trim (it's an alternative to leather), a wireless phone charger, a rear camera and a 10-speaker Bang & Olufsen sound system. We've plumped for a few extras such as Rapid Red paint, which costs £800 (white is the only no-cost option). A er that we added the £1300 Driver Assistance pack for a head-up display and a 360deg reversing camera, plus the £1050 heat pump, because frankly this is 2025 and every EV should come with one. That brings the total to a not insignificant £53,125. A cheaper Explorer with a smaller battery is on the way, just so you know. When our road testers put an Explorer Premium RWD through the mill last year (Autocar, 23 October), they determined Ford had succeeded in injecting some personality into the handling but fallen short of producing a car that matches up to some of Ford's nest. Certainly, on first impressions, the Explorer is proving very pleasant to drive, but while it's not anodyne, like some electric SUVs, there's little I'd call especially memorable. But it's early days, so there's plenty of time to find roads on which I can try to discover some dynamism. Still, I'm looking forward to doing that, and to finding out how well the Explorer fulfils the role of a daily companion. Enough to inspire me to circumnavigate the globe in one? I'm not so sure about that, but let's see. Even if my upcoming adventures aren't as ambitious or spectacular as Alford's, getting to know this Explorer promises to be an interesting quest. Second report It's the key fob that threw me, simply because it was so incongruous. The Ford Explorer has a very pleasant, stylish key fob, but it's a Volkswagen Group key fob. That makes sense on one level: it's no secret that the Explorer is built on the German giant's MEB platform, so there will be many shared parts. But I was still surprised that extended as far as the casing for the remote locking system. So I decided to see how many VW parts I could find in my Ford. The first few are pretty obvious: the stubby drive mode selector behind the steering wheel, the digital instrument cluster and the head-up display. They even run the same so ware. The indicator stalks are VW parts too, as are the light-switch panel and the window and locking controls on the driver's door. Also, while the steering wheel has a Blue Oval in the middle, the controls on it are the much-moaned-about haptic 'buttons' from early MEB cars (which the VW Group is in the process of phasing out). You get the idea. But before you think this is a rant about platform sharing, here's my point: I don't think it matters. Certainly I reckon that many car buyers won't notice or care. And here's why: the VW Group's key fob, indicator stalks, drive mode selector and digital instrument cluster are all perfectly good. Why would Ford spend money on engineering its own casings just so they look different? Instead, Ford has clearly focused its investment on areas where it feels it can add value and buyers will appreciate it: the massive touchscreen is a Ford unit and runs Ford so ware. And Ford engineers spent time working on the Explorer's suspension and ride, which does feel sharper than most other MEB-based cars'. Frankly, I would rather Ford's engineers spend their time making a car ride and handle better than ensuring it has an on-brand key fob. And that does seem to have been the case so far. I suspect relatively few people would realise the key fob is a VW Group design. And it is a perfectly good key fob, probably sleeker and shinier than recent Ford ones. Even if it will keep on confusing me when I pick it up. Third report Car designers are very clever people, and as cars have swelled in recent years, they've become increasingly adept at hiding their dimensions. The best example of recent years is probably the Hyundai Ioniq 5, which in pictures looks like a Lancia Delta-esque hatchback but is actually a pretty hefty SUV. The Renault 5 is another car that has surprised me with its footprint when I've seen it in the metal: it's still a relatively small car, but those sharp lines and retro creases have you thinking compact hot hatch. And the new Ford Explorer is yet another that can trick you into misjudging its size based on images – although, unusually, in this case it's because it's actually smaller than it looks. The Explorer's distinctively boxy SUV styling gives it real presence, making it feel like it's a bigger, chunkier car. It was only when I opened the boot and was mildly surprised at how relatively small it was (445 litres) that I realised how compact the car really is. It's not just me: when chatting about the Explorer to my colleague Steve Cropley before he borrowed it for a tour of Ford UK sites (Autocar, 30 April), he said: 'It's a slightly big beast, isn't it?' He was quite surprised (as I had been) when he learned that, at 4468mm, the Explorer is about the same length as the Ford Focus. Now clearly the Explorer is an SUV, so it's a bigger, chunkier car than the Focus, but it's significantly shorter than the Kuga, which is Ford's Focus-equivalent SUV. I really got a sense of its size on a recent trip to a garden centre, when I spied an opportunity to squeeze the Explorer into a parking spot between a Fiesta and an older Focus. This unlikely family gathering was quite telling, highlighting that if you look beyond that bluff, beefy front end, the Explorer is actually relatively compact. Which, for someone who much prefers smaller cars, is a very good thing. Among the reasons why people buy big SUVs seem to be perceptions of safety and security and a love of a commanding, high-riding seating position. Well, the Explorer feels securely stout and has a nice high-set driving seat, yet it's also well-sized for Britain's narrow roads. As Cropley found on his recent tour, there's actually a pleasing dynamism to the Explorer's ride and handling, and while it's not as well resolved as a Fiesta or Focus, there is some real engagement to it. And because it isn't an oversized SUV, you can actually enjoy that without fear of kerbing a wheel or threatening oncoming traffic. In my experience, it isn't that compromised inside, either. I mentioned that I was surprised by how small the boot was, but I should stress that this is all relative – and probably not helped that my previous car was a Skoda Superb Estate, a car with a boot so large it probably has its own microclimate. I've rarely struggled to get everything I needed into the back of the Explorer, and because it's quite a deep boot, it's easy to stack items if needed. In fact, my only gripe with the boot – and this is true of a lot of EVs – is that the compartment for storing the charging cable neatly is under the floor. Which is fine unless you're trying to plug in your car when you've got a bootful of stuff. The Explorer's rear seats don't seem that compromised either, and there's plenty of space up front. Clearly, some families will need a bigger vehicle, but the Explorer seems to offer plenty of car for most. And while it's not exactly a conventional hatchback, it does that within a comparatively compact footprint while giving the impression that it's more 'SUV' than it really is. That seems like a good combination to me. The Ford's touchscreen is a talking point, and one that's been commented on by all my friends and family who have had the privilege of being offered a ride. And that's no surprise: the 14.6in vertical screen dominates the dash. It's got a neat party trick, too: you can slide it up, both to set it at an angle of your choosing and to access a sort-of-secret storage cubby. I tend to have it down: it makes the screen easier to reach and means I can better see the B&O soundbar. My ears aren't attuned enough to know if having the soundbar blocked by a bit of the touchscreen affects the audio quality, but that's my excuse and I'm sticking to it. Touchscreens in cars remain a contentious issue, but there are now too many controls and functions not to use them, so the focus is on ensuring they're implemented as well as possible. That includes placement: should a screen be portrait or landscape? (We're excluding Mini's round screens, those crazy oddballs.) Initially I was part of Team Landscape, because they look better and more natural on horizontally aligned car dashboards – and it matches the way my TV sits. But the more I experience vertically mounted screens the more I'm convinced. Last year I ran a Honda e:Ny1 that had a supersize portrait screen, and I really warmed to it (the screen, that is; the rest of the car was 'meh'). The Explorer confirms my feelings. They may sit oddly on the dash, but vertical screens just work better in a car. The top is near your eyeline, and it's much easier to glance down at a vertical screen than one that's landscape. Easier to reach, too: I have had to reach across big horizontal screens to access functions in the far corner, which isn't ideal when driving. The Explorer's Sync infotainment system divides the screen into a number of sections, including some fixed elements that remain in place. They're still not as easy to locate as physical buttons, but you do develop the muscle memory that makes it easier to reach them. The top includes key driving and car control functions, including the drive mode selector – which is useful, because I always need to access it when I get in so I can select Eco. The HVAC controls are all at the bottom of the screen and well placed to access at a glance. That leaves the middle for key functions such as the sat-nav, entertainment and other bits. It's also where Apple CarPlay appears – although somewhat to the chagrin of my phone, because the Explorer's wireless charger refuses to fill my iPhone's battery as fast as wireless CarPlay drains it. Both Google Maps and Ford's own sat-nav work well in portrait mode, giving a better view of what's ahead than a landscape screen. It's much easier to scroll through a list of podcasts or songs, too. Ford clearly thinks the landscape screen is a selling point: it's one aspect of the VW-platformed Explorer that was kept in-house. I'm minded to agree. I'm fast becoming a member of the Portrait Society. Final report The estimable Steve Cropley has already explained things better than I ever could. When I took delivery of this Ford Explorer, the question set for me to answer concerned whether an EV with Volkswagen underpinnings could really be a true Ford. I had several months to consider. Then Steve borrowed the Explorer for a Ford-themed UK road trip (30 April) and pretty much nailed my brief in two days. As he put it, Ford took a VW platform, built a sensible, honest family car and added just enough handling pep to evoke the brand's turn-of-the-century glory days and make the Explorer feel distinct from its German cousins and worthy of bearing the Blue Oval. Well, I agree with Steve on all counts. Early in my days with the Explorer, I found myself counting the VW parts – which include plenty of the switchgear and even the key fob. But beyond those bits, it looks and feels like a Ford. And you know what? VW switchgear is pretty good, generally (particularly since Ford hasn't ported over the controversial infotainment sliders). Some of the switchgear in Rachel Burgess's opulent Bentley Bentayga long-termer is recognisable from elsewhere in the VW Group, and if it's good enough for Bentley, then it's fine for Ford. And, really, why change stuff just for the sake of it? And while the Explorer doesn't quite have the pep of a Fiesta or a Focus, it certainly holds its own with any of Ford's petrol SUVs. So, basically, Steve was right. Case closed, then. Actually, hang on, because there's still a separate yet related question to answer: what's the Explorer like to live with? After all, even if it looks like a Ford, feels like a Ford and, er, quacks like a Ford, that doesn't matter if it can't deliver on the brief of an electric family crossover. Well, generally, I liked it. It's the sort of car that takes a bit of time to warm to but reveals plenty of strengths over an extended period. The styling featured plenty of SUV cues but had enough edge that it looks better in the metal than in photos. It's well sized too: despite that boxy exterior, it was pleasingly compact and proved very easy to place on the road. It had strong all-round visibility as well. Typically for a Ford, the interior was pleasant and comfortable enough but definitely majored on practicality rather than premium sheen. Nothing wrong with that, though. One bit of VW switchgear that did annoy was the window control panel on the driver's door, which featured tactile 'buttons' and made me press a toggle to operate the front or rear windows. As previously reported, the big, portrait-oriented touchscreen is a bit in your face at first but generally works quite well, and once I had learned where the key controls were, I didn't rue the relative lack of physical buttons. My Explorer was in my ideal electric SUV spec: a single motor paired with the biggest (77kWh) battery possible. I struggle to see why you would need the extra performance of the dual-motor version, because this car had more than enough accelerative juice to keep pace in traffic and cruised happily at motorway speeds. Much of my running was spent either pootling around town or on trips up and down the motorway, which is always a good test of range. Officially, it's 354 miles, but when I filled the battery, the most I ever saw on the range indicator was 302 miles – and I managed to cover only 270 miles before I needed to plug in again. Still, that's not a disgraceful range for an electric SUV, and while I generally was achieving around 3.5mpkWh, on his outing Steve returned just above 4mpkWh. He isn't just annoyingly e cient when it comes to turns of phrase, then. The caveat to the range is that it was definitely very temperature-dependent. When the Explorer arrived in far colder weather, the indicated range when the battery was full was closer to 250 miles. That's a disappointing variance, especially because the heat pump fitted to my test car was a £1050 option. Still, it was relative: last year I ran a pumpless Honda e:Ny1 and its range suffered so much from colder conditions that I was deterred from putting the heater on. The other four-figure option fitted to my Explorer was the £1300 Driver Assistance Pack, which added a head-up display, lane change assistance, parking assistance and a 360deg parking camera. Even if the Explorer is quite easy to place, due to its compact size, it's probably worth the outlay for that camera, which was generally excellent and made reversing a cinch. But adding options adds cost, and that's where my Explorer does give pause for thought. With a price of £53,125 as tested, it's quite pricey compared with rivals. In fact, it costs more than the Volkswagen ID 4, which has essentially the same running gear but is bigger. You can understand why, since VW is clearly making profit from selling its hardware and Ford then needs its own mark-up to compensate. That makes the Explorer slightly harder to recommend. It might come down to what deals you can nd. But there's enough character and Ford-infused charm here to make up for that extra outlay if you really want an EV bearing a Blue Oval. A proper Ford, then, and a good family crossover. Ford Explorer specification Prices: List price new £49,975 List price now £49,975 Price as tested £52,125 Options: Driver Assistance Pack £1300, heat pump £1050, Rapid Red paint £800 Fuel consumption and range: Claimed range 354 miles Battery size 82/77kWh (total/usable) Test average 3.4mpkWh Test best 4.2mpkWh Test worst 2.8mpkWh Real-world range 262 miles Tech highlights: 0-62mph 6.4sec Top speed 112mph Engine Permanent magent synchronous motor Max power 282bhp Max torque 254lb ft Transmission 1-spd reduction gear, RWD Boot capacity 470 litres Wheels 8.0Jx20in (f), 9.0x20in (r) Tyres 235/50 R20 H XL (f), 235/45 R20 H XL (r), Continental EcoContact 6 Kerb weight 2102kg Service and running costs: Contract hire rate £420 CO2 0g/km Service costs None Other costs None Fuel costs £277.20 Running costs inc fuel £277.20 Cost per mile 9 pence Faults None Back to the top
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