Japanese electronics giant Panasonic said it will spend $4 billion to build a new battery manufacturing factory in the United States for electric vehicles.
The lithium-ion battery plant in Kansas could create up to 4,000 new jobs, Panasonic said, as the Tesla supplier drives to expand its presence.
“With the increased electrification of the automotive market, expanding battery production in the US is critical to help meet ever-evolving demand,” Kazuo Tadanobu, president and CEO of Panasonic Energy, said in a statement.
The Kansas factory will be Panasonic’s second electric car battery operation in the United States, joining its facility in Nevada.
READ THIS
Pakistan’s auto industry to manufacture 8 million vehicles by 2026
Xiaomi to break into ever-expanding electric vehicles market
The announcement comes with Tesla struggling to boost production, after unveiling two new factories in Germany and the US state of Texas earlier this year.
Japanese electronics giant’s decision was welcomed by Kansas Governor Laura Kelly as “transformative” for the local economy.
The new factory is expected to be located in De Soto, Kansas, though the move is subject to approval by Panasonic’s executive board.
The decision was also welcomed by US Ambassador to Japan Rahm Emanuel, who said the move to be “one of the largest battery production sites for the next generation of electric vehicles” in Kansas was “a vote of confidence” in the US economy and its workers.
