Panasonic had an OLED business cooperation in the past but they dissolved their tie-up at the end of 2013. Panasonic also withdrew from producing organic electroluminescence panels earlier this year.
Japan Display was formed in April 2012 by integrating the LCD businesses of Hitachi Ltd., Toshiba Corp. and Sony.
Sony is also said to be in talks with Japan Display over the potential sale of most of its OLED business.
Panasonic is expected to focus on its LCD and businesses. TThe Japanese company is expected to become the sole manufacturer in Tesla Motors Inc's planned multibillion-dollar U.S. battery factory, firming up its commitment to the electric car maker's project.
Panasonic is already Tesla's prime supplier for lithium-ion cells but competes with Samsung SDI Co Ltd for auto batteries.