All You Need to Know about Panasonic’s New EV Battery Plant
The International Energy Agency (IEA) expects EV sales to grow 25% in 2025, but without batteries these vehicles cannot go anywhere
Among the industry’s key players is Panasonic, with more than three million EVs powered by its batteries as of December 2023.
Panasonic is looking to leverage its century-long expertise to decarbonise transport while transforming battery production itself.
A Lithium-ion leadership
Panasonic has supplied batteries for millions of EV and is one of the leading manufacturers of lithium-ion batteries in North America.
Transport accounts for around 25% of global CO₂ emissions according to the IEA, making the shift to EVs vital to global decarbonisation goals.
Panasonic’s battery business could play a central role in this transition.
“In addition to reducing emissions from Panasonic’s own operations, this ‘reduction contribution’ also advances Panasonic’s commitment to fight climate change,” Allan Swan, CEO of Panasonic Energy of North America, tells Panasonic.
“The automotive battery business is the flagship of the Panasonic Group’s efforts to confront climate change issues.”
Scaling up in the US electrification
Allan leads operations at the Tesla Gigafactory in Nevada and is now set to lead the development of Panasonic’s newest battery facility, set to become the world’s largest, in De Soto, Kansas.
The plant broke ground in November 2022 and is scheduled to begin production in 2025.
“The shift to EVs requires training the next generation to invent, design and build the battery technology that will power our future,” says Allan.
“We hope to inspire the young people who will create a more vibrant and sustainable future and we are committed to helping them achieve their goals.”
The Kansas plant will manufacture 2170 cylindrical lithium-ion batteries, which are highly sought after by automotive OEMs due to their energy density, safety and performance.
“What we do here today, will impact your tomorrow,” says Allan.
Why does North America matter?
The company’s North American expansion aligns with both market opportunity and sustainability priorities.
“In North America, the shift to EVs is expected to accelerate against the backdrop of stricter environmental regulations and consumer demand for high-performing, fun-to-drive electric vehicles,” Allan tells the company.
“In addition, high demand for long-distance travel in the U.S. makes this the market where we can best utilise our high-capacity technology, one of our strengths.
“If trucks, trains and buses are included, this is a very large market for automotive batteries.”
Long-distance driving demands in the US also make high-capacity battery technology more valuable, something Panasonic says it sees as a competitive advantage.
Panasonic also sees the local sourcing of materials as a critical advantage, not only for resilience but for sustainability.
Allan says to Panasonic that: “North America offers local sourcing of raw materials mined and processed in a responsible manner, often using renewable energy and other sustainability best practices.”
“As a pioneer in this market, we are making a rapid succession of bold investments to strengthen our position in North America as the leading company driving the adoption of EVs.”
This localisation can reduce transport emissions, shortens supply chains and strengthens regional EV infrastructure.
A net zero vision for battery manufacturing
According to Panasonic, the production of EV batteries carries a significant carbon footprint, with nearly 90% of emissions occurring during material extraction, processing and logistics.
Panasonic aims to tackle this challenge head-on.
“Our Kansas plant is designed to operate as a Panasonic-designated net zero facility,” says Allan.
“We will minimise the amount of electricity needed for production and all aspects, from wiring to machinery and equipment, will support CO₂ emissions reduction.”
The plant will also shift to 100% local renewable energy sourcing within the next ten years.
The company is optimising its entire value chain, from sourcing and manufacturing to recycling, to reduce its Carbon Footprint of Products (CFP).
Strategic partnerships for circular supply chains
Panasonic says its long-term strategy includes forming alliances with like-minded companies that support its climate goals.
One such example is Redwood Materials, a US-based battery recycling firm.
“Our partnership with Redwood Materials began in 2019 and together we are recycling waste materials from our Nevada plant,” explains Allan.
Panasonic has also signed purchase agreements for recycled cathode materials and copper foil, key components in lithium-ion batteries.
Other major sourcing partnerships include:
- Sila Nanotechnologies (US): Silicon anode materials
- Novonix (US): Artificial graphite with reduced CO₂ emissions
- Nouveau Monde Graphite (Canada): Renewable-powered graphite for anodes.
"By procuring Canadian materials for our US plants, we can shorten the supply chain, significantly reducing distribution-related CO2 emissions," Allan tells Panasonic.
"They are like-minded companies that are sincerely facing the challenge of reducing CO₂ emissions.”
The Panasonic commitment
All of these efforts fall under the umbrella of Panasonic GREEN IMPACT, the group’s global initiative to reduce 93 million tonnes of CO₂ emissions by early 2031.
Battery production and EV adoption are central pillars in achieving this ambitious target.
“What I find very exciting about working at Panasonic is the sense that we are taking on the challenge of combating global environmental issues like climate change,” says Allan.
“This is true not only for me but for all Group employees: we’re all committed to making products that help in that fight.”
