Panasonic Holdings has agreed to supply lithium ion EV batteries to Subaru, according to unconfirmed local reports.
The deal was expected to be announced officially in days, ahead of first quarter results.
Subaru planned to complete a dedicated EV plant in Japan by 2027 to supply all markets. It currently relies on Toyota for its rebranded Solterra EV which is based on the bZ4X.
Panasonic Energy, the group battery unit, plans to boost its position in the EV battery market in the face of fast growing competition from South Korea and China.
The company is already a significant player in the battery market thanks to a strong relationship with Tesla. The two companies have a joint venture in Nevada producing batteries for the US EV maker.
Last month Panasonic announced plans to build a third EV battery plant in the US, to supply local automakers, with a second US$4bn facility already under construction in Kansas.
Panasonic recently signed a deal to supply batteries to Mazda for models to be launched after 2025. The company also has a deal with Toyota Motor in EV and hybrid battery segments.
