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Panasonic Opens Huge Battery Plant in This State
The company’s second US EV battery facility will focus on producing cylindrical lithium-ion cells.
Panasonic officially opened a new 300-acre plant for EV batteries this week—already its second in the US—calling it one of the largest automotive battery plants on the continent.
Aimed at production of cylindrical lithium-ion batteries, the plant is located in De Soto, near Kansas City, and is eventually planned to feature an annual production capacity of 32 GWh.
In combination with the Nevada Factory, which opened in 2017, the two plants are envisioned to boast a production capacity of about 73 GWh, once operating at full power.
The new plant also represents nothing short of the largest economic development project in Kansas history, and it is expected to generate up to 4,000 direct jobs and about 8,000 in total.
The plant will produce cylindrical lithium-ion batteries for automotive use, with Tesla being one of Panasonic's main customers, and it is also projected to attain about 20% higher productivity compared to the earlier Nevada plant, thanks to labor-saving technologies that have since been developed for battery assembly.
Panasonic has about 30 years of experience in lithium-ion battery production, with the EV boom having fueled demand in recent years.
"The opening of our Kansas factory marks a major milestone in our journey to scale advanced battery production in the United States," says Kazuo Tadanobu, CEO of Panasonic Energy.
"This achievement would not have been possible without the strong support of our local partners and the state of Kansas."
In total, the company has produced some 19 billion cells since entering the EV battery sector, providing batteries for some 3.7 million electric vehicles.
The Kansas plant will also help insulate Panasonic (and the automakers who buy its battery cells) from tariffs on imported batteries, which have become a particularly acute issue in recent months.
The Kansas plant opens just in time for a scramble among EV makers for locally made battery packs and other components, amid a reshoring push by the Trump administration.
"Together, we are accelerating the shift to electrification, reinforcing regional supply chains, and nurturing the next generation of battery talent," Tadanobu added.
"This facility represents not only our commitment to the region but also a foundation for long-term collaboration and innovation in the US."
The next big step for Panasonic and others will be the commercialization of solid-state designs, which offer greater energy density and thermal safety, among other attributes, but they are not yet ready for mass production.
Solid-state compositions aren't expected in EVs for another few years. But when they do arrive, it should be a pivotal moment for the EV industry.
Would you consider buying an EV with fewer than 200 miles of range, or is such a rating unrealistic in the current US market? Let us know what you think in the comments below.