TOKYO, Feb 2 Reuters Japan39;s Panasonic Holdings Corp cut its annual operating profit forecast by 12.5 on Thursday after lowerthanexpected thirdquarter earnings, hit by headwinds from a slowing global economy and persistently high raw materials prices.

The company faces challenges amid a tricky outlook for global growth, as it looks to further build out its energy business, which includes making auto batteries for electric vehicle EV maker Tesla Inc.

The conglomerate slashed its operating profit forecast to 280 billion yen 2.18 billion for the financial year to Mar. 31, from 320 billion yen, in part due to a less rosy outlook for its industry segment this quarter.

It expects to invest up to about 600 billion yen in the three years through March 2025 in a new battery plant it started building in Kansas last year, Group Chief Financial Officer Hirokazu Umeda told an online earnings presentation.

Panasonic said in presentation materials it will aim to grow profits in automotive batteries by expanding sales of its 2170 model lithiumion battery cells and commercialising the more advanced 4680 format battery.

The company39;s energy unit last month signed an agreement with Lucid Group Inc to supply lithiumion batteries for the EV maker39;s full lineup, including its Air luxury model.

The company also said it aimed to begin supplying the 4680 format battery to the North American market in the financial year through March 2024 to commercialise this model of battery cells….