Panasonic, a globally prominent manufacturer of lithium-ion batteries, has entered into a preliminary agreement with Equinor, a Nordic energy firm, and Norsk Hydro, an engineering and industrial enterprise, to jointly develop a battery business within Northern Europe.

The three organizations confirmed they will dedicate the next several months to evaluating the European market for lithium-ion batteries and investigating the feasibility of establishing a substantial battery operation in Norway.

“This partnership leverages Panasonic’s standing as a pioneering technology company and a frontrunner in lithium-ion battery development, alongside the extensive industrial knowledge of Equinor and Hydro – both significant global companies – to potentially establish a resilient and environmentally responsible battery venture in Norway,” stated Mototsugu Sato, Panasonic’s executive vice president, in a press release. “We are excited to begin this effort to explore the implementation of sustainable, cutting-edge technology and supply networks to meet the stringent requirements of lithium-ion battery consumers and bolster the renewable energy sector throughout Europe.”

The agreement includes an examination of the possibilities for a comprehensive battery value chain and the potential for strategically locating supply chain collaborators, as detailed in a company statement.

Panasonic is currently in close competition with LG Chem for the position of top global battery provider for electric vehicles. Tesla and Toyota represent Panasonic’s primary customer base for batteries, while LG serves automakers such as General Motors, Groupe Renault, Hyundai, Ford Motor Company, and Volvo. 

Panasonic’s expansion into Northern Europe, in collaboration with two major regional companies in both hydrocarbons and renewable energy, highlights the considerable opportunities present in the European market beyond the automotive industry.  

“Our companies are committed to leading the energy transition. The formation of this exceptional battery partnership reflects Equinor’s objective to evolve into a diversified energy company,” explained Al Cook, Equinor’s executive vice president of Global Strategy & Business Development, in a statement. “We anticipate that battery storage will become increasingly vital in achieving net-zero emissions for energy systems. By combining our distinct energy expertise, our organizations will strive to create a battery business that is financially viable, expandable, and sustainable.”