TOKYO, July 30 (Reuters) - Panasonic ( PCRFF ) on

Wednesday said operating profit at its battery-making energy

unit grew strongly in the first quarter due to the AI investment

boom, offsetting negative impacts from U.S. tariffs and the

termination of electric vehicle tax credits.

Profit for the key unit, which makes batteries for Tesla

and other EV makers, rose 47% year-on-year to 31.9

billion yen ($215.6 million).

"Concerns remain over a further slowdown in EV demand due to

U.S. tariff policies and termination of IRA 30D tax credit",

Panasonic ( PCRFF ) said in a presentation slide, but noted demand for

data centre-bound energy storage systems is "growing more than

anticipated".

For the full-year that ends in March 2026, the company kept

its operating profit forecast for the energy unit at 167 billion

yen.

Panasonic Holdings ( PCRFF ) said in May it would cut 10,000 staff and

expected to book restructuring costs of 130 billion yen as part

of a push to improve group profitability.

The electronics manufacturer said at the time it did not

expect to book any restructuring costs in its energy business.

Last week, Panasonic Energy's major customer Tesla warned of

fallout from the U.S. government's legislation to cut a $7,500

tax credit for EV buyers.

Panasonic Energy operates a plant in the U.S. state of

Nevada that provides batteries to Tesla and earlier this month

started production at its second U.S. plant, in Kansas.

It also makes energy storage systems for data centres in its

consumer business, which in the April-June quarter saw a rapid

rise in demand owing to massive AI-related investments, the

company said.

But both auto batteries and consumer energy storage systems

would see certain impact from U.S. President Donald Trump's

tariffs, it added, without providing the impact forecast in

numerical terms.

Panasonic Energy is investing in new battery technologies as

it competes with Chinese and South Korean rivals such as CATL

and LG Energy Solution (LGES) in the

global EV supply chain.

Last week, LGES warned of slowing demand by early next year

due to U.S. tariffs and policy uncertainties after it reported a

profit jump for the April-June period.

($1 = 147.9400 yen)