Panasonic's New EV Battery Plant: All You Need to Know

The International Energy Agency (IEA) expects electric vehicle (EV) sales to rise by 25% in 2025. To meet this level of growth, the manufacturing and production of batteries is critical.

One of the biggest players in this key sector is Panasonic, which powers more than three million EVs with its batteries as of December 2023.

The company aims to use its century-long expertise to decarbonise transport and transform the way batteries are produced to support the industry's growth.

Lithium-ion leadership and climate goals

Panasonic is among the leading producers of lithium-ion batteries in North America, supplying millions of units for EV applications. According to the IEA, transport accounts for about 25% of global CO₂ emissions, making the shift to EVs an essential part of international decarbonisation strategies.

Panasonic Energy of North America CEO Allan Swan says: “In addition to reducing emissions from Panasonic’s own operations, this ‘reduction contribution’ also advances Panasonic’s commitment to fight climate change. The automotive battery business is the flagship of the Panasonic Group’s efforts to confront climate change issues.”

The company sees its battery business as a central element in the transition to cleaner transport.

Scaling up US operations

Allan oversees Panasonic’s work at the Tesla Gigafactory in Nevada and is now directing the development of a new battery plant in De Soto, Kansas. The facility, set to become the world’s largest battery 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,” he says.

“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 facility will produce 2170 cylindrical lithium-ion batteries, valued by original equipment manufacturers (OEMs) for their high energy density, safety and performance. “What we do here today, will impact your tomorrow,” Allan says.

The expansion is targeted at meeting growing demand in the US, where strict environmental regulations and consumer interest in high-performing EVs are accelerating adoption. Allan notes that the US market’s preference for long-distance travel makes it ideal for Panasonic’s high-capacity battery technology.

Local sourcing of raw materials is another priority. “North America offers local sourcing of raw materials mined and processed in a responsible manner, often using renewable energy and other sustainability best practices,” Allan explains, adding that localisation reduces transport emissions, shortens supply chains and strengthens EV infrastructure in the region.

Net zero battery manufacturing and supply chain partnerships

Panasonic acknowledges that producing EV batteries involves a high carbon footprint, with almost 90% of emissions generated during material extraction, processing and logistics. The Kansas plant is being built as a designated net zero facility.

“We will minimise the amount of electricity needed for production and all aspects, from wiring to machinery and equipment, will support CO₂ emissions reduction,” says Allan.

Panasonic plans to source 100% local renewable energy for the site within the next decade. The company is also optimising its value chain, from sourcing and manufacturing to recycling, to lower its Carbon Footprint of Products (CFP).

Strategic partnerships are part of this approach. Since 2019, Panasonic has worked with US battery recycling firm Redwood Materials to recycle waste materials from its Nevada facility. It has purchase agreements in place for recycled cathode materials and copper foil.

Other sourcing partnerships include:

• Sila Nanotechnologies (US) for silicon anode materials

• Novonix (US) for artificial graphite with reduced CO₂ emissions

• Nouveau Monde Graphite (Canada) for 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 says. “They are like-minded companies that are sincerely facing the challenge of reducing CO₂ emissions.”

All initiatives are part of Panasonic GREEN IMPACT, a global effort to cut 93 million tonnes of CO₂ emissions by early 2031, with battery production and EV adoption at its core.

“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.”