Panasonic’s Kansas facility aims to begin mass production by March 2025 to meet North America’s growing demand for Electronic Vehicles.
Panasonic Energy Co, Ltd, a Panasonic Group company on Monday announced the firm’s decision to begin the building of a new battery plant in Kansas. The facility’s construction is set to begin in the month of November 2022 and will produce cylindrical Li-ion batteries for Electronic Vehicles (EVs). In the beginning, the manufacturing facility in Kansas will expand the firm’s existing line of 2170 EV batteries, which are currently in high demand.
The facility in De Soto will be the company’s second electronic vehicle battery facility in the United States after Panasonic Energy of North America (PENA) in Sparks, Nevada. Focusing on North America’s growing demand and market for electronic vehicles, the Kansas facility aims to begin mass production by March 2025. Introducing the new facility with 2170 batteries will ensure Panasonic fulfills the orders of its customers effectively, with an initial production capacity of 30 GWh.
President and Chief Executive Officer of Panasonic Energy Co. Ltd, Kazuo Tadanobu stated that the firm is seeking methods to strengthen the company’s battery production capability in the North American region to meet the increasing demand from its partners as global trends tend to prefer Electronic Vehicles. Panasonic aims to accelerate zero emissions in the future and work toward the mission of creating a society “in which the pursuit of happiness and a sustainable environment are harmonized”. “With our superior technology and extensive experience, we will drive the growth of the Li-ion battery industry”, says Kazuo Tadanobu in a statement.
Panasonic Energy supplies batteries to Tesla Inc and in the month of July announced its decision to choose Kansas as the site for its new plant to supply batteries for Tesla along with other companies planning to have large investments in order to meet the surging demands and qualify for Electronic Vehicles tax credit rules. Kansas state officials inform that the new facility would help in creating around 3000 job opportunities with an investment of up to $4 billion. Panasonic also lowered its full-year operating profit from 360 billion yen to 320 billion yen for the financial year ending on March 31.
Panasonic posted a reduction in its operating profit range of 11% after having a better performance than the analyst’s estimations. The reduction in operations profits fell mostly due to an increase in the price of logistics and raw materials along with an increase in fixed costs and development expenses as it increased production. Rival companies like South Korean Energy Solutions and CATL recorded strong battery profit growths after passing cost increases to clients. The company also intends to increase its battery production by the year 2029 mostly in North America. Mostly known for producing electrical appliances and providing consumer services, Panasonic is now expanding its range of products with building parts and supplying services to other business concerns.
About the Panasonic Group
The develops innovative technologies and solutions for wide-ranging applications in the housing consumer electronics, automotive, industry, energy sectors, and communications across the globe. Founded in 1918, the firm is dedicated to enriching the well-being of people and society. The firm oversees its businesses based on founding principles utilized to generate new value and offer sustainable solutions for the present world.
About Panasonic Energy
Panasonic Energy Co., Ltd., is established in April 2022 as part of the Panasonic Group’s switch to an operating company system that provides innovative battery technology-based products and solutions throughout the world. The company brings consistent, accessible, and protected power to a broad range of business areas ranging from mobility and social infrastructure to medical and consumer products through its storage battery systems, automotive lithium-ion batteries, and dry batteries. Panasonic Energy is entrusted to contributing to a society that realizes happiness and environmental sustainability, and through its business activities, the Company aims to address societal issues while taking the lead on environmental initiatives.