Japanese battery manufacturer Maxell has announced that it will cease production of prismatic lithium-ion batteries by May 2025. This marks the end of nearly three decades of manufacturing, with these batteries having powered mobile phones, smartphones, and portable gaming consoles since 1996. In light of declining profitability and increasing market dominance of laminated lithium-ion batteries, Maxell will also dissolve its Chinese subsidiary Wuxi Maxell Energy Co., which currently handles prismatic cell production.
Shift towards solid-state batteries
Maxell claims it will be redirecting its focus and resources towards solid-state battery development, aiming to capitalize on the technology’s advantages in safety, performance, and lifespan. These next-generation batteries are expected to play a key role in industrial equipment, electric mobility, and medical devices, where high energy density, thermal stability, and long cycle life are critical.
One-time loss, long-term vision
As part of the transition, Maxell anticipates a one-time financial impact of equivalent to approximately 26.7 million US dollars in the current fiscal year, ending March 2025. This includes an eight-million dollar inventory write-down and 18.7-million dollar extraordinary loss, mainly for employee retirement costs. Despite the short-term burden, Maxell is positioning itself for long-term growth in next-generation energy storage markets, reinforcing its commitment to innovation in battery technology.
