All You Need to Know about Panasonic’s New US Battery Plant

The International Energy Agency (IEA) predicts a 25% growth in electric vehicle (EV) sales by 2025.

However, these vehicles rely heavily on battery technology, presenting a crucial opportunity and challenge for manufacturers.

Among the industry's pivotal players is Panasonic, which has powered more than three million EVs worldwide as of December 2023.

The company aims to harness its extensive experience to not only decarbonise transportation but also revolutionize the battery production process itself.

Battery innovation

Panasonic has supplied batteries for millions of EV and is one of the leading manufacturers of lithium-ion batteries in North America. 

Transport accounts for around 25% of global CO₂ emissions according to the IEA, making the shift to EVs vital to global decarbonisation goals.

Panasonic’s battery business could play a central role in this transition. 

“In addition to reducing emissions from Panasonic’s own operations, this ‘reduction contribution’ also advances Panasonic’s commitment to fight climate change,” Allan Swan, CEO of Panasonic Energy of North America, tells Panasonic. 

“The automotive battery business is the flagship of the Panasonic Group’s efforts to confront climate change issues.”

Advancing US electrification

Allan leads operations at the Tesla Gigafactory in Nevada and is now set to lead the development of Panasonic’s newest battery facility, set to become the world’s largest, in De Soto, Kansas. 

The plant broke ground in November 2022 and is scheduled to begin production in 2025.

“The shift to EVs requires training the next generation to invent, design and build the battery technology that will power our future,” says Allan.

“We hope to inspire the young people who will create a more vibrant and sustainable future and we are committed to helping them achieve their goals.”

The Kansas plant will manufacture 2170 cylindrical lithium-ion batteries, which are highly sought after by automotive OEMs due to their energy density, safety and performance. 

“What we do here today, will impact your tomorrow,” says Allan.

Why does North America matter?

Panasonic's North American expansion is strategically aligned with regional market potential and sustainable ambitions.

“In North America, the shift to EVs is expected to accelerate against the backdrop of stricter environmental regulations and consumer demand for high-performing, fun-to-drive electric vehicles,” Allan tells the company.

“In addition, high demand for long-distance travel in the U.S. makes this the market where we can best utilise our high-capacity technology, one of our strengths. 

“If trucks, trains and buses are included, this is a very large market for automotive batteries.”

Long-distance driving demands in the US also make high-capacity battery technology more valuable, something Panasonic says it sees as a competitive advantage.

Panasonic also sees the local sourcing of materials as a critical advantage, not only for resilience but for sustainability.