Panasonic Energy opened its massive cylindrical lithium-ion battery factory in De Soto, Kansas, on Monday, marking the completion of what the company claims will be the world’s largest EV battery manufacturing plant. The $4 billion facility spans 300 acres and aims to produce 32 GWh of battery capacity annually once fully operational.
The Japanese electronics giant began mass production of 2170 cells at the Kansas facility, complementing its Nevada factory that currently produces 41 GWh annually. Combined, the two plants will boost Panasonic Energy’s U.S.-based production capacity to approximately 73 GWh when the Kansas operation reaches full capacity.
The timing of the opening comes as the electric vehicle industry grapples with slower-than-expected growth and policy uncertainty. Tesla’s first-quarter revenue was down 9% and net income was down 71%, while the company cited “changing political sentiment” as a potential impact on demand.
Kansas offered over $800 million in tax incentives through its APEX program to attract the project, which state officials called the largest economic development initiative in Kansas history. The facility is expected to create 4,000 direct jobs and potentially 8,000 additional positions in related industries.
Panasonic claims the Kansas factory will achieve 20% higher productivity than its Nevada plant through labor-saving production lines. The company also plans to introduce advanced materials that will increase cell capacity by approximately 5%.
The facility represents Panasonic’s strategy to localize production for North American customers while reducing supply chain emissions. Panasonic Energy has delivered more than 11 billion cells to date and powered approximately 3.7 million EVs globally.
Despite the optimistic opening, the broader EV battery market faces headwinds. Panasonic estimates U.S. tariffs will cost the company’s energy segment $540 million, though executives have downplayed concerns about long-term demand.
The company’s lithium-ion cells feature an energy density of 800 Wh/L and have not caused any vehicle recalls to date, according to Panasonic’s safety record claims.
