Panasonic Kansas battery production begins with 2170 cells and $4bn investment

Panasonic Battery

Panasonic Kansas battery production begins at the De Soto facility. Panasonic Kansas battery production targets 32 GWh a year at full ramp. Panasonic Kansas battery production uses 2170 cells and automated lines. The 300-acre site delivers 20% higher productivity than Nevada. Panasonic invested $4bn, the largest project in Kansas history. U.S. capacity rises to 73 GWh once fully operational.

Scale, productivity, and customer mix

The plant supplies Tesla and seeks additional automaker contracts. Sequential EV demand shifts require broader offtake to sustain utilization. Automated lines aim to stabilize yield, cost, and throughput. Location near key interstates optimizes logistics across North America. Therefore, OEMs gain a central, IRA-aligned U.S. battery source.

Competitive landscape and technology choices

Rivals are revising U.S. battery plans amid policy uncertainty. AESC paused a South Carolina plant in June. LG Energy Solution shifted lines to LFP for energy storage. Panasonic sticks with 2170 chemistry while exploring platform flexibility. As a result, the site can pivot as demand evolves.

The Metalnomist Commentary

Panasonic’s Kansas ramp strengthens U.S. EV battery security at scale. Execution now hinges on customer diversification and stable yield. Watch contract wins, line uptime, and cost curves through 2026.