Maxell to dissolve battery subsidiary, expects losses, revises forecast

** Maxell Holdings (TSE: 6810) announced it will discontinue the production of prismatic lithium-ion batteries, a segment of its Energy business, leading to the dissolution of its wholly-owned subsidiary, Wuxi Maxell Energy Co., Ltd. (WME), located in Wuxi, China. This decision, aimed at streamlining resources towards higher-growth areas and newer technologies like all-solid-state batteries, prompted a revision of the company's consolidated financial forecast for the fiscal year ending March 31, 2025. The forecast revisions reflect the recognition of operating expenses and extraordinary losses associated with the closure, including approximately ¥1.2 billion in inventory valuation losses and ¥2.8 billion related to employee severance and asset impairment.