March 24 — Maxell, Ltd. (TSE: 6810) has announced a strategic business restructuring. According to Maxell’s official website, its subsidiaryWuxi Maxell Energy Co., Ltd. (Wuxi City, China, hereinafter “WME”) is set to cease production of prismatic lithium-ion batteries by May 2025. The dissolution of WME will be coordinated with the Chinese government. At the same time, Maxell has declared a strategic shift towards all-solid-state batteries and high-growth market segments. Despite an expected $26.7 million loss in fiscal year 2024 due to business restructuring, the company has raised its fiscal year 2025 revenue forecast to $863 million (+2.6%).
Declining 3C Battery Business Leads to Shutdown
WME has been manufacturing prismatic lithium-ion batteries for mobile devices such as mobile phones, smartphones, and portable gaming consoles since 1996. However, as the market shifts towards laminated lithium-ion batteries, sales and profitability have declined. Over the past three years, WME’s net sales plummeted from $53.7 million in 2022 to $28.9 million in 2024, with net profit shrinking by over 40%.
| WME’s Financial results and financial position for the last three years | |||
| Fiscal year | Year endedDecember 2022 | Year ended
December 2023 |
Year ended
December 2024 |
| Net assets | 459.029 thousand RMB | 449,009 thousand RMB | 188,927thousand RMB |
| Total assets | 517.754 thousand RMB | 481,622 thousand RMB | 246,031 thousand RMB |
| Net sales | 389.698 thousand RMB | 352.498 thousand RMB | 209.959 thousand RMB |
| Operating profit | 33.620 thousand RMB | 27.113 thousand RMB | 13,865 thousand RMB |
| Ordinary profit | 54.816 thousand RMB | 40,913 thousand RMB | 21.133 thousand RMB |
| Net profit | 41.123 thousand RMB | 30.771 thousand RMB | 15,816 thousand RMB |
Maxell’s management concluded that “future profitability recovery is unlikely,” leading to the decision to shut down the production line. The company expects to record a $26.7 million loss for fiscal year 2025 due to this shutdown, including a $8.0 million inventory impairment loss and a $18.7 million special loss (covering employee severance payments and asset impairment). According to the announcement, this restructuring aims to enhance the group’s profitability.
Full Commitment to Solid-State Battery Development
In May 2024, Maxell announced that it had increased the maximum operating temperature of its all-solid-state batteries to 150°C, with plans to begin mass production for industrial equipment applications as early as fiscal year 2026. Maxell President Keiji Nakamura stated, “By 2030, we plan to invest $66.8 million in all-solid-state batteries, with a target of $200.3 million in sales from this segment alone.”
As stated in the company’s announcement:
“Going forward, the Company will further strengthen the Energy business by focusing on primary batteries for automotive applications and medical devices as the core of growth strategy, and aiming to achieve early contribution to the business performance of all-solid-state batteries, primarily for industrial equipment. “
With strong performance in automotive and medical primary battery sectors, Maxell has also raised its energy business sales forecast by 4.3%.
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