Panasonic plans to start building a new battery plant in Kansas next month.
The Japanese company will soon break ground in the northeastern city of De Soto, where it plans to produce and supply lithium-ion batteries for use primarily in Tesla's electric vehicles.
Mass production of Panasonic's 2170 model Li-ion battery cells is targeted for the end of March 2025, with an initial production capacity of 30 gigawatt hours.
"As the global shift to EVs accelerates, we are looking into ways to strengthen our battery production capacity in North America and meet the growing demand from our automotive partners," Kazuo Tadanobu, president and CEO of Panasonic Energy Co., Ltd., said in a statement.
This marks the firm's second US EV battery plant, following the Panasonic Energy of North America (PENA) facility in Sparks, Nevada—now one of the world's largest lithium-ion battery factories. Panasonic is reportedly eying a third EV battery plant in the US, likely in Oklahoma (as a twin to the Kansas workshop), which is expected to also cost $4 billion and create 4,000 jobs.
"With our superior technology and extensive experience," according to Tadanobu, "we will drive the growth of the Li-ion battery industry, accelerate our efforts to achieve zero emissions in the future, and work toward our mission of achieving a society in which the pursuit of happiness and a sustainable environment are harmonized."
The company is also working to supply Tesla with a larger 4680 battery model, starting with production in Japan in its next fiscal year, Reuters reports.