The Japanese technology giant, which supplies most of Tesla's EV batteries, will build its new battery plant in De Soto, Kansas. 

The announcement comes five years after Panasonic Group began production of lithium-ion batteries at Panasonic Energy of North America (PENA) in Sparks, Nevada. PENA is now one of the world’s largest lithium-ion battery factories, having shipped over six billion EV battery cells.  While PENA’s operations in Sparks, Nevada will continue, the new facility in Kansas is intended to further support Panasonic’s long-term commitment to advancing the EV industry in the USA.

Panasonic is the world’s third-largest producer of EV batteries after CATL and LG Energy Solution, with production facilities in the USA and Japan.  The company plans to more than triple EV battery production capacity by 2028, boosting its output mainly in North America.  Earlier this year, it announced that it would establish a production facility at its Wakayama Factory in western Japan to manufacture new"4680" lithium-ion batteries for EVs in order to expand its business globally.

The planned project is expected to create up to 4,000 new jobs and result in an investment of up to US$4Bn, which represents the largest economic development project in Kansas history.  It is the latest of a series of projects to be announced in the USA.   In May, Hyundai said that it would invest US$5.5Bn to build full EV and battery manufacturing facilities in Georgia.  And in January, Ultium Cells, a joint venture between LG Energy Solution and General Motors, announced a US$2.6Bn investment to build its third battery cell manufacturing plant in the USA in Lansing, Michigan.

While Panasonic’s US ambitions are closely linked to Tesla, the long-standing partners are increasingly looking to diversify their supply chains.  While Tesla has established partnerships with CATL and LG Energy Solution, Panasonic is seeking to diversify its customer base to include other OEMs.