Japanese-Thai Collaboration Breaking New Ground | Pioneering a Circular Economy Vision

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公開日 2025.01.10

Thailand faces a severe waste problem. The country’s 16 landfills are overflowing with unsegregated trash, and proper disposal methods are lacking. Panasonic Energy’s batteries, which hold about 80% market share in Thailand, were once destined for these landfills. However, a partnership with Thailand’s leading conglomerate CP Group (CP All) is changing this narrative. This article highlights the bold efforts of Japanese and Thai companies as they pioneer a circular economy initiative together.

Why Panasonic Batteries Dominate the Market

Panasonic Energy (Thailand) Co., Ltd. (hereafter referred to as “Panasonic Energy”) dry batteries are deeply ingrained in Thai society, often recognized as “elephant-branded batteries”. These batteries are sold in nearly 100,000 locations across various outlets, from small stores to convenience stores, securing approximately 80% market share in Thailand. Explaining the company’s strengths behind this dominance, Mr. Tanimoto notes, “As Thailand’s only dry battery manufacturer, we operate domestic production facilities. For over 60 years, under a flexible SCM (Supply Chain Management), we have been producing high-quality, high-performance batteries, which is our greatest characteristic.”

The company’s strong distribution network within Thailand is another advantage. According to Mr. Tanimoto, Panasonic batteries are sold through 17 dealers who directly visit wholesale and retail outlets, as well as to direct sales to major retailers. In particular, the 25-year sales record in 7-Eleven stores, operated by CP All Public Company Limited (hereafter “CP All”), has effectively created a scenario where “Thai people encounter these batteries every single day—there is not a single day without their presence.”

Established in Thailand as the First Overseas Company After WWII

Panasonic Energy Co. Ltd. was established in 2022 under a holding company structure. Its predecessor, Matsushita Electric Industrial Co., Ltd., founded in 1918, began producing dry batteries in-house in 1931. In 1961, “National Thai Co., Ltd.” was established as the first overseas subsidiary after World War II. The company started by producing manganese batteries and later expanded into audio equipment, televisions, and electric fans. From 1997, it focused solely on the battery business, strengthening production capabilities over time and rebranding in 2008 to its current name, Panasonic Energy (Thailand) Co., Ltd.

Panasonic Energy Co. Ltd. has 20 major bases worldwide, including locations in Thailand and Indonesia representing Southeast Asia. In 2020, leveraging its experience and expertise in Thailand, the company launched a regional headquarters structure (RHQ) for Southeast Asia, with Mr. Tanimoto playing a key role in this RHQ initiative.
　

A Turning Point Toward Environmental Efforts: The Unified Sales-Production Model

Panasonic Energy’s mission is “Achieving a society in which the pursuit of happiness and a sustainable environment are harmonized free of conflict.” Mr. Tanimoto highlighted that the company’s environmental focus in Thailand intensified following the integration of sales and production in 2022 when Panasonic Siew Sales Thailand’s battery sales department merged with the production side. “We are aware of Thailand’s serious environmental issues, such as a lack of landfill space, increasing plastic waste, and unsegregated trash. By transitioning from solely manufacturing to direct connections with end customers, we found it is easier to take concrete actions to address these challenges,” he explained.

During this transformative period, the company established three midterm policies to become indispensable to Thai society for the next century. This policy is built on three pillars:

1. Contribution to consumer’s life
2. Contribution to local communities
3. Contribution to the environment

For the first pillar, the company focuses on enhancing consumer’s life through performance, quality, and affordable batteries. Regarding the second pillar, the company has conducted “Battery Exchange Events” as part of its CSR initiatives since 2005 which are held every two years. They visit all provinces nationwide. At each village, old batteries are collected and exchanged for new ones free of charge. This not only fosters brand loyalty among Panasonic users but also provides valuable insights into the devices being used and the battery sizes required, which can be leveraged for market trends and future product development.

Additionally, the company visits schools to hold handmade battery classes, emphasizing its commitment to community-rooted engagement. Mr. Tanimoto explains, “Children in village schools rarely have opportunities for hand-making experiences with private companies, so even without prior appointments, we are always warmly welcomed.”

He further shared a touching story from these visits: “After making batteries with the handmade battery kits, we turned off the lights in the classroom and held a lighting ceremony. The moment children saw the light they created with their handmade batteries, their faces lighted up with radiant smiles.”

For the third pillar, a key focus, the company has achieved carbon neutrality by combining energy-saving measures, renewable energy generation, and carbon credit purchases. Additionally, the company applied to the government for the introduction of the “Made from Carbon Neutral Factory” certification system, which was approved. In February 2024, the company launched batteries bearing this certification logo for the first time in Thailand.

Mr. Tanimoto reflects, “At the time, there was no certification system in Thailand. Therefore, we first acquired the existing global certification ‘PAS 2060 Carbon Neutrality.’ We then collaborated with government agencies to establish the certification criteria and procedures in Thailand, eventually securing approval and implementation.”

Furthermore, Panasonic Energy established Thailand’s first dry battery collection and recycling initiative through collaboration with CP All, initiating the collection of used batteries at 7-Eleven stores.

The Challenges of Achieving Battery Recycling

In the battery collection and recycling initiative, collection boxes for used batteries are placed at 7-Eleven stores. The collected batteries are retrieved and sorted by Panasonic Energy before being transported to its partner steel company, UMC Metals Ltd. (hereafter “UMC Metals”), for recycling, Mr. Tanimoto explains, “Currently, under Thai government guidelines, only Panasonic batteries certified as environmentally non-harmful that can be recycled. As a result, we manually sort out Panasonic batteries from the collected items and recycle them by melting them in UMC Metals’ electric furnace.”

“This project has not been smooth sailing,” he continues with a serious expression. Starting around 2019, he approached CP All executives, proposing a partnership to realize a circular economy concept, as both companies shared a similar environmental vision. However, finding common ground on specifics such as implementation methods, cost-sharing, and the placement of collection boxes proved difficult, and discussions often stalled. Panasonic Energy’s headquarters in Japan also demanded explanations of the economic rationale for the project, and as it was a new initiative, the scrutiny was intense. Additionally, due to the lack of staff with expertise in recycling, the company had to establish working groups to advance the project while managing their regular business operations.

The effort was divided into two teams: one for the collection process and the other for recycling, with Thai employees in both groups to facilitate external outreach. Reflecting on the challenges, Mr. Tanimoto recalls, “The hardest part was deciding what to recycle the batteries into.” Initially, there was an idea to recycle them into fertilizer components, and approaches were made to fertilizer companies. However, due to various obstacles, the idea was not adopted. Similarly, finding a company interested in recycling the batteries into iron was a prolonged and difficult process.
　

Breakthroughs With Partner Companies and Support from Headquarter Executives

The tide began to turn around in 2021, with the emergence of partner companies sharing the same vision. Collaborations were established with HIDAKA YOOKOO Enterprises, a Japanese recycling company with over 90 years of expertise in iron recycling, and UMC Metals, a Thai steel company with advanced technology for melting batteries into iron. This partnership allowed Panasonic Energy to apply for government approval to recycle batteries in electric furnaces, which they submitted to the Department of Industrial Works (DIW) in September 2021. “Even after applying, obtaining approval was not easy, as battery recycling was unprecedented in Thailand,” Mr. Tanimoto recalls. Employees attended DIW seminars and built relationships with stakeholders, starting from simply getting their faces recognized.

Steady progress was also made with CP All on operational details, and the collection boxes were installed at 7-Eleven stores in June 2022 for the first time. By March 2023, boxes were placed in 31 stores, and a press release was issued. Despite these achievements, two years after the DIW application, government approval for battery recycling remained unapproved.

Persistence paid off when Panasonic headquarters’ executives, who deeply understood the project, engaged in persistent negotiation that culminated in a successful outcome of the electric furnace battery recycling permission in December 2023. By March 2024, recycling began at UMC Metals, followed by a press conference attended by the DIW director-general. This event garnered significant attention, even being featured in major Thai newspapers.

Reaching 1,000 Stores and a New Starting Point

By June 2024, coinciding with World Environment Day, collection boxes had been installed in 1,000 7-Eleven stores, achieving a major milestone. “However, with over 15,000 7-Eleven stores nationwide, we are still only partway there,” Mr. Tanimoto says. “Additionally, Thailand discards approximately 300 million batteries annually—about 4 per person. We are far from having the infrastructure to recycle them all.”

Looking ahead, he revealed plans for a government-supported industry-academia collaboration project. This initiative, launched in July 2024, involves stakeholders such as Panasonic Energy, companies engaged in battery recycling, Chulalongkorn University, King Mongkut’s University, and Thailand’s Program Management Unit for Competitiveness (PMUC). Discussions aim to establish a nationwide battery recycling framework. Once a lone pioneer in the effort, Panasonic Energy is now moving forward alongside an increasing number of partners, leading Thailand’s circular economy for batteries. It can be said that this is precisely the result of untiring efforts continuing to take action.

“Our goal is to establish a complete scheme—from collection and sorting to recycling and public awareness,” he says. “With like-minded partners who share our passion for Thailand’s environment, we aim to create not just business value but also a lasting impact for future generations.”