Panasonic to build $4 billion EV battery plant in Kansas

Panasonic Enerco Co plans to build a state-of-the-art electric vehicle (EV) battery facility in the Kansas City Region.

Projected to be one of the largest EV battery manufacturing facilities of its kind in the U.S., the company has identified a site in De Soto, Kansas, for this potential project. The project could create up to 4,000 new jobs and result in an investment of approximately $4 billion (Rs 31,852 crore). This investment by Panasonic Energy, which is understood to be a supplier to Tesla, is the largest private investment in Kansas as yet. 

“With the increased electrification of the automotive market, expanding battery production in the U.S. is critical to help meet demand,” said Kazuo Tadanobu, President, CEO of Panasonic Energy. “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.”

This planned state-of-the-art facility will create and supply lithium-ion batteries and accelerate the future of electric vehicle innovation on a global scale. Panasonic Energy’s current U.S. battery manufacturing operation has shipped more than six billion EV battery cells. Panasonic Energy plans to expand its production of EV batteries as the automotive industry shifts to more sustainable electric technologies.

Panasonic Energy selected Kansas due to its business-friendly climate, robust talent pool and workforce skillset, support for technology innovation, strong transportation infrastructure, and central location. This builds on Kansas City’s legacy manufacturing and automotive industry strengths.

Kansas has an established battery manufacturing sector with seven establishments employing approximately 1,300 individuals. The state ranked second in the nation for employment and wage concentration in the sector in 2021. With the opportunity to potentially add an additional 4,000 jobs, this deal will make Kansas an industry leader at a time when the sector is predicted to grow at an annualized rate of 2.4%.

The Kansas City region is the third fastest-growing tech market in the U.S., and is a nucleus of engineering, technology and automotive manufacturing expertise. With a strong talent pipeline and cutting-edge training programs, the Kansas City market employs nearly 21,000 workers who contribute to the $19 billion KC transportation manufacturing industry.