Panasonic To Build $4 Billion Battery Plant In Kansas To Meet Tesla Demand

An anonymous reader quotes a report from Nikkei Asia: Panasonic will invest $4 billion in a second U.S. electric vehicle battery factory in Kansas, its subsidiary Panasonic Energy announced on Thursday, confirming an earlier Nikkei report. The factory is expected to hire as many as 4,000 employees and supply a new high-capacity battery for Tesla. The decision follows Tesla's April opening of a second American EV factory in Texas to meet brisk demand.

Panasonic aims to triple or quadruple EV battery production capacity by fiscal 2028 from the current level of roughly 50 gigawatt-hours per year. It plans to install two production lines at a battery component factory in Wakayama Prefecture, Japan, in fiscal 2023 and begin manufacturing its new high-capacity model, the 4680. That investment is expected to total roughly 80 billion yen ($580 million). Panasonic had said it would determine whether to build new manufacturing facilities after seeing how production at the Wakayama plant fared in terms of profitability.

Increasing production demands from Tesla, a leading source of the Japanese electronics group's earnings, were likely a factor in the decision for a new U.S. plant, along with Panasonic's progress on the new technology. Prototypes started to ship in May. Emanuel noted that Panasonic's investment plan of up to $4 billion will create as many as 4,000 American jobs. Panasonic's first U.S. plant in Nevada, the Gigafactory 1, is jointly operated with Tesla. The Japanese company invested roughly 200 billion yen in that facility, which only began turning a profit in the year ended March 2021 as high defect rates kept mass production from getting off the ground.

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