Why Panasonic Opened one of the Largest EV Battery Plants
Panasonic has officially opened its new cylindrical lithium-ion battery factory in De Soto, Kansas, US.
Spanning 4.7 million square feet, this facility is now one of the largest gigafactories in North America.
The Japanese company began mass production of 2170 battery cells on 14 July, setting a target for an annual production capacity of about 32 GWh.
Panasonic regards the Kansas factory as a landmark investment, among the most substantial in its 107-year history.
The facility was constructed on a 300-acre site, equivalent to more than 225 football fields, at a cost of US$4bn.
Upon full operation, it is projected to create up to 4,000 jobs.
Panasonic's manufacturing strategy
This Kansas facility is part of Panasonic Energy's strategic dual-region manufacturing model, complementing its existing Nevada Gigafactory, operational since 2017.
The Nevada plant, currently employing more than 4,000 people, has an annual capacity of 41 GWh and has delivered more than 11 billion battery cells to date.
When both North American facilities operate at full capacity, they will collectively produce approximately 73 GWh annually.
"The opening of our Kansas Factory marks a major milestone in our journey to scale advanced battery production in the United States," said Kazuo Tadanobu, CEO of Panasonic Energy.
"This achievement would not have been possible without the strong support of our local partners and the State of Kansas. Together, we are accelerating the shift to electrification, reinforcing regional supply chains and nurturing the next generation of battery talent."
A new level of productivity
The Kansas factory incorporates labor-saving production lines aimed at achieving about 20% higher productivity compared to the Nevada facility.
Panasonic Energy intends to introduce products utilising advanced materials, expected to increase cell capacity by approximately 5% in the near future.
With an industry-leading volumetric energy density of 800Wh/L, these lithium-ion cells have powered around 3.7 million electric vehicles with approximately 19 billion cells supplied as of March 2025.
The company's products have maintained a solid safety record, with no vehicle recalls linked to its batteries thus far.
Allan Swan, President and Chief Operating Officer of Panasonic Energy North America, is particularly enthused by the sustainability of the project.
"We believe that we will continue to succeed if we scale our business in a way that is sustainable for our people, sustainable for our business, sustainable for our industry, and sustainable for our planet," he says.
Panasonic's position in a competitive market
The launch of this facility coincides with a period when car manufacturers are actively pursuing expansions in EV production to meet growing consumer demands and comply with evolving regulatory frameworks.
While the US lacks nationwide mandates for phasing out petrol-fuelled cars, states like California have implemented regulations targeting the ban of internal combustion engine vehicle sales by 2035.
Panasonic plans to establish itself as a principal supplier to global auto manufacturers, leveraging its 30 years of expertise in lithium-ion battery production.
Globally, Panasonic generates 70 battery cells every second, producing more than six million cells daily.
The Kansas facility's anticipated annual output of 32 GWh will provide enough batteries to power approximately 500,000 electric vehicles once fully operational.
The economic impacts
Beyond direct job creation, the factory is expected to indirectly generate around 8,000 jobs in supplier and related industries.
Panasonic Energy is also partnering with institutions like the University of Kansas, fostering long-term industry-academia collaborations aimed at technological advancements and specialised talent development.
The facility's scale becomes apparent in its physical dimensions, with three passenger planes able to line up nose-to-tail in the central common area between the factory's two wings.
Walking every square foot of the facility would require nearly 13 days of continuous movement, which speaks to the sheer scale of the operation.
It is a project that is significant not only to Panasonic or the EV sector, but also the people of Kansas.
“Politics is the art of the possible, and the grand opening of the Panasonic plant in De Soto ushers in a new era for Kansas — a proud step forward in our mission to bring manufacturing jobs back to America, where they belong," says Ty Masterson, President of the Kansas Senate.
Mayor of De Soto, Rick Walker, is especially emotional about the opening of the plant.
“As someone who grew up in De Soto, I've spent years driving past this site when the lights were out and the future was uncertain," he says.
"Seeing it come back to life — with Panasonic Energy as the anchor — is deeply meaningful.
"There’s a new energy in De Soto — not just in batteries, but in the spirit of the community and the momentum we’ve created together. It’s a powerful moment for our city, and one our community can be proud of."
