Japanese electronics and battery producer Panasonic recorded a 52% drop in its net profits during second-quarter FY21, Kallanish reports.

During the three months ending September 30, Panasonic recorded net profit of 48.9 billion Japanese yen ($466 million), over half of the JPY100.9 billion net profit posted in Q2 2019. The decrease was attributed to deteriorating market conditions as a result of the Covid-19 pandemic and lower sales in both domestic and international markets.

Sales revenues from Panasonic’s automotive division fell to JPY569.3b during second quarter from JPY747.2 billion the year prior. This includes sales revenue for automotive and electric vehicle (EV) batteries, which totalled JPY118.3 billion during second quarter – an increase of 2% year-on-year.

Battery production volumes during the quarter were not disclosed.

Panasonic produces and supplies the 21700 cylindrical battery cells for the Tesla Model 3 and Model Y at the jointly-operated Gigafactory 3 in Nevada, US, while the 18650 cylindrical battery cells are for the Tesla Model S and Model X.

Panasonic chief financial officer confirmed that the company would produce a new 4680 battery cell for Tesla while presenting the company’s second quarter earnings. The company will also launch an additional production line at the Nevada Gigafactory in 2021, aiming to increase capacity to 35-38 gigawatt hours (GWh) by FY2023.