Panasonic is betting on its supplier relationship with Tesla, and the emerging clean energy industry, to drive future profits.

Under the company’s new CEO, Yuki Kusumi, Panasonic will move away from its focus on the traditional hardware business, and move towards battery technology, and business solutions.

Kusumi announced that Panasonic was developing a small-scale energy system that can power factories and offices without fossil fuel. It will generate and store solar power on sunny days, and use fuel cells at night. The company is banking on US$2.7 billion in sales by2030 from this system, after Japan and numerous other countries have pledged net zero emissions by 2050.

Likewise, Panasonic is developing the ‘4680’ battery as part of a JV with Tesla. The battery will extend the battery life of the Tesla, and make the cars more affordable.

Although the company’s profits have been damaged by the stalled automotive industry, to which they are a key supplier, Kusumi said the company is now ready for action.

“We are at a stage where the existing visions are put into practice rather than making more new visions,” he said.