Panasonic is retooling its battery business, which supplies Tesla, to focus on AI data-centre energy storage, building cells at a Kansas plant rather than importing them, with mass production targeted for fiscal 2028 (the year ending March 2029). The Japanese group is redirecting around ¥350 billion [$2.18bn USD] of a previously announced ¥500 billion AI infrastructure investment to its Energy division. Panasonic Energy CEO Kazuo Tadanobu called the unit's ¥950 billion data-centre energy storage sales target for fiscal 2028 a "minimum commitment," with the business aiming past ¥1 trillion. "Since most of our customers are in the U.S. for these energy storage systems, we think it makes sense to complete the supply chain as much as possible within the U.S.," Yuki Kusumi said during a roundtable interview in Tokyo. The cells differ from car cells, tuned for grid-style duty cycles. Panasonic also plans a third plant in Mexico, also targeting fiscal 2028, giving it a North American base. Chinese battery giants including CATL are racing into the same data-centre storage market.