Panasonic in Talks to Build Additional $4B EV Battery Plant in U.S.
2022.08.26 15:58
Panasonic in Talks to Build Additional $4B EV Battery Plant in U.S.
By Michael Elkins
The wall street journal reported Friday that the Japanese conglomerate, Panasonic (TYO:6752) is in discussions to build an additional roughly $4 billion EV battery plant in the U.S.
Citing people familiar with the matter, the report says that Panasonic is looking at Oklahoma as the location for its new plant, though there are no guarantees that an agreement will be reached. However, if the agreement comes through, the new plant will come in addition to a roughly $4 billion EV battery factory that the Japanese company said in July it plans to build in Kansas.
In April, the Oklahoma state Senate approved a bill that would grant up to $698 million in rebates and incentives to a big manufacturing facility operated by an unnamed company.
“This effort is aimed at attracting a company that will invest a minimum of $3.6 billion and create at least 4,000 new jobs within five years,” Senate Appropriations Committee Chairman Roger Thompson said in a statement at the time.
Gov. Stitt said it would be “one of the largest factories in the entire country, just a humongous, humongous factory.”
As EV makers boost production volume, requiring more batteries, Panasonic having plants in Oklahoma and Kansas would benefit from being relatively close to Tesla (NASDAQ:TSLA) gigafactory in Texas. In addition, EV startup Canoo (NASDAQ:GOEV), which last year unveiled a supply deal with Panasonic, has said it plans to build a plant in Oklahoma.
Panasonic’s rivals are also opening new U.S. factories. General Motors (NYSE:GM) is planning a $2.6 billion battery plant in Lansing, Michigan, with South Korean partner LG Energy (KS:373220). Contemporary Amperex Technology (SZ:300750), China’s top EV battery maker, was aiming to announce a plan for a plant in North America as early as this month. However, plans have stalled after recent tensions between U.S. and China.
