San Francisco, NFAPost: Panasonic has decided to build the world’s largest EV battery plant with a total investment of $4 billion in Kansas that will manufacture and supply lithium-ion batteries to EV makers.
The company’s move comes at a time when globally there is a renewed momentum for electric vehicles. Also, Panasonic decision assumes significance as there is a global supply chain realignment among OEMs to reduce their dependency on China.
Panasonic Energy Co., Ltd., a Panasonic Group company, and Kansas Governor Laura Kelly jointly announced that the state of Kansas has approved an Attracting Powerful Economic Expansion (APEX) state incentive* application submitted by Panasonic Energy.
According to a press release issued by the company, the factory is slated to be larger than the Gigafactory it operates with Tesla in Sparks, Nevada, which is already one of the largest lithium-ion battery factories in the world.
The electronics supplier also aims to begin producing a high-capacity battery for Tesla in early 2024. Those batteries are expected to increase energy capacity fivefold, which could boost range by more than 15% and cut production costs.
Panasonic said its advanced battery technology will improve EV range and that scaling its operations will lower the cost to produce EVs.
Panasonic Energy President and CEO Kazuo Tadanobu said with the increased electrification of the automotive market, expanding battery production in the US is critical to help meet demand.
“Given our leading technology and depth of experience, we aim to continue driving growth of the lithium-ion battery industry and accelerating towards a net-zero emissions future,” said Panasonic Energy President and CEO Kazuo Tadanobu.
Panasonic Energy is a global leader in lithium-ion batteries, with a 100-year history of innovation in batteries spanning both battery cell technology and battery business operations. The company plans to expand its production of EV batteries, as the automotive industry shifts to more sustainable electric technologies.
The company has contributed to achieving greater efficiency and economies of scale necessary to drive this transformation, and the planned facility in Kansas supports the company’s commitment to contribute to society by reducing global carbon emissions.
The deal represents the largest economic development project in Kansas’s history. Located in the Kansas City region, the facility will create up to 4,000 new jobs and about $4 billion in capital investment.
