In a surprising development, Panasonic Energy, a key supplier to electric vehicle giant Tesla, has announced the cancellation of its proposed battery factory in Oklahoma. The decision, described as the result of “careful deliberations,” marks a significant shift in the company’s North American expansion strategy.
The Oklahoma facility, which would have been Panasonic Energy’s third in North America, was initially planned with a projected investment of $5 billion. The state government had even outlined an incentive package in April to support the project. However, the company is now redirecting its focus towards the construction of its Kansas plant.
The Kansas facility, currently under construction with an estimated investment of $4 billion, is expected to commence operations by March 2025. A Panasonic spokesperson emphasized the company’s commitment to this project and mentioned ongoing considerations for further business expansion in North America.
Panasonic’s decision comes at a time when its electric vehicle (EV) battery business is gaining precedence within the Panasonic Holdings group. The EV battery segment, with Tesla as its major client, is aligning with the broader market dynamics in the United States. The U.S. government’s significant tax credits aimed at boosting investment in the EV sector are a key factor influencing Panasonic’s strategic focus.
The shift in Panasonic Energy’s investment priorities underscores the rapidly evolving landscape of the EV battery market. With the United States emerging as a lucrative destination for EV-related investments, the company’s realignment of resources towards the Kansas plant reflects a tactical approach to capitalize on these market opportunities.
