Construction on Panasonic battery cell factory in Kansas set to begin

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In the US state of Kansas, the Japanese corporation Panasonic has set November 2022 as the beginning of construction on its new battery cell factory. This will be Panasonic’s second battery factory for electric vehicles in the USA. The company has a jointly owned and operated Gigafactory 1 in Nevada.

The battery manufacturer had chosen a location in De Soto for the construction of the factory. Further, the state of Kansas had accepted a state incentive application submitted by Panasonic. This is according to a July press release from the business and the state’s economic development office.

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Cells in the 2170 format will initially be produced in the new Panasonic battery cell factory in Kansas. The end of March 2025 is the anticipated start date for series production. It is expected to start with a 30 GWh initial annual production capacity. This will increase Panasonic’s 2170 production capability in the USA because Gigafactory 1 also produces this round-cell configuration. In addition, 2170 round cells are now widely used in various eMobility applications.

More on the Panasonic battery cell factory in Kansas

After the state approved an $829 million investment package to lure the business to the Sunflower State, the pledge was made. The package includes a $234 million payroll rebate paid over 10 years, a $500 million investment tax credit (12.5% over 5 years), $5 million in education and training investments over 5 years, $1 million in relocation investments over 10 years, and a $60.2 million sales tax exemption over 5 years.

Laura Kelly, the governor, referred to it as an investment that will benefit the whole state. It is anticipated that it would support 16,500 construction jobs in addition to 4,000 new jobs that will be generated by suppliers and local businesses.