Panasonic in Talks to Build $4 Billion Oklahoma EV Battery Plant

Panasonic is reportedly holding talks to build a third electric vehicle battery plant in the US.

The Japanese company already jointly runs a battery factory with Tesla in Nevada, and has gained approval to build a second battery factory in Kansas. However, as The Wall Street Journal(Opens in a new window) reports, people familiar with the matter believe Panasonic wants to build a third factory, and is willing to spend another $4 billion in the process.

The most likely location for this third factory is Oklahoma, and it would act as a twin to the Kansas plant. Both would produce new EV batteries at the same rate to keep up with growing demand for the vehicles. The Kansas plant is also expected to cost $4 billion and create 8,000 jobs in the process. Oklahoma would no doubt enjoy a similar boost to local employment if the new plant goes ahead.

For now, nobody is commenting, including Oklahoma Gov. Kevin Stitt. However, it’s worth noting that EV startup Canoo is gearing up(Opens in a new window) to start producing vehicles at a factory in Oklahoma, and the company signed a battery supply deal(Opens in a new window) with Panasonic last year. Canoo is also set to supply Walmart with 4,500 all-electric delivery vehicles next year.

Back in February, Panasonic announced that it would begin mass production of Tesla’s new 4680 battery by the end of March 2024. However, that production is planned for new lines at the company’s Wakayama factory in Japan. The new plant in Kansas, and now potentially Oklahoma, would likely also produce the 4680 batteries when they come online, which Tesla says are key if we want electric vehicles that cost $25,000.