July 14, 2025 | De Soto, Kansas, USA — Panasonic Energy Co., Ltd., a subsidiary of Panasonic Group, today officially inaugurated its new electric vehicle (EV) battery factory in De Soto, Kansas, marking the opening of one of North America’s largest cylindrical lithium-ion battery manufacturing facilities.
The 300-acre plant commenced mass production of 2170-format EV battery cells at the grand opening ceremony held on July 14. The De Soto site covers approximately 4.7 million square feet and aims to reach an initial annual capacity of 32 GWh, with potential output scaling to about 73 GWh when combined with the company’s Nevada facility.
Panasonic reports the Kansas plant will deliver around 20 % higher productivity compared to its Nevada operation by deploying advanced, labor-saving production lines. Future enhancements—including new materials expected to raise cell energy density by ~5 %—are also planned.
The facility currently employs approximately 1,100 workers, with a goal of scaling up to 4,000 direct jobs and an estimated 8,000 additional positions through suppliers and related industries. State support includes an $829 million incentive package under Kansas’s APEX program, with Governor Laura Kelly forecasting $2.5 billion in annual economic impact.
Representatives from Panasonic leadership—including CEO Kazuo Tadanobu and North America COO Allan Swan—as well as the Japanese ambassador, state officials, and regional lawmakers attended the opening. Swan shared that production began “a week ago” and emphasized that initial ramp-up toward full capacity would take “three to four months.”
Despite concerns over U.S. EV demand volatility, Panasonic remains confident. Swan stated the facility is “future-proof” and designed to support a geographically diversified customer base, including Tesla, Lucid, Toyota, and others.
With this milestone, Panasonic strengthens its U.S. battery supply chain, further supporting the domestic EV industry’s growth and advancing energy transition efforts.