Panasonic plans to build a new plant in Kansas to produce batteries for Tesla, according to sources speaking with Nikkei.
The Japanese company is said to invest “several billion dollars” for its second U.S EV battery factory, with its location chosen based on tax incentives and also its location near Tesla’s Gigafactory in Austin, Texas.
Panasonic wants to increase EV battery production capacity by up to 400% by fiscal 2028, up from its current capacity of 50 gigawatt-hours annually.
The other U.S. plant Panasonic has is in Nevada, Gigafactory 1, which is a joint-operation with Tesla. The company’s investment started becoming profitable in March 2021.
In 2023, Panasonic will build two production lines at its factory in Wakayama Prefecture in Japan, to start production Tesla’s 4680 batteries, as part of the battery maker’s $580 million investment.
Back in March, it was reported Panasonic was choosing between Kansas or Oklahoma for a possible Tesla battery factory.
Last month, Panasonic sent Tesla 4680 battery samples and was said to prepare for a production surge, as the electric automaker is facing unprecedented demand, amid an ongoing global chip shortage and supply chain headwinds.
Earlier today, Panasonic said it plans to increase battery density by 20%, by 2028.
