Electrification: Inside Panasonic's New US EV Battery Plant
The International Energy Agency (IEA) anticipates a 25% rise in electric vehicle (EV) sales in 2025.
However, these vehicles rely heavily on battery systems to operate.
Panasonic has equipped more than three million EVs with its battery technology as of December 2023 and hopes to use its experience to reduce transportation emissions.
Lithium-ion sustainability
Panasonic is a key supplier of lithium-ion batteries in North America, a critical component for the EV market.
Panasonic’s battery operations could help to support the expansion of electrification, helping to decarbonise operations that traditionally rely on fossil fuels.
“Beyond lowering emissions from our internal operations, this effort also furthers Panasonic's pledge to combat climate change,” explains Allan Swan, CEO of Panasonic Energy in North America.
“The automotive battery sector is a cornerstone in Panasonic's strategy to address environmental issues.”
Electrification in the US
Allan leads the Tesla Gigafactory in Nevada and is also leading the development of Panasonic’s imminent large-scale battery plant in De Soto, Kansas.
The site broke ground in November 2022, with production slated to begin in 2025.
“The shift to EVs requires training the next generation to invent, design and build the battery technology that will power our future,” says Allan.
“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 plant will manufacture 2170 cylindrical lithium-ion batteries, which are highly sought after by automotive OEMs due to their energy density, safety and performance.
“What we do here today, will impact your tomorrow,” says Allan.
Why does North America matter?
The expansion in North America aims to align both with strategical market prospects and sustainability objectives.
“In North America, the shift to EVs is expected to accelerate against the backdrop of stricter environmental regulations and consumer demand for high-performing, fun-to-drive electric vehicles,” Allan says.
“In addition, high demand for long-distance travel in the U.S. makes this the market where we can best utilise our high-capacity technology, one of our strengths.
“If trucks, trains and buses are included, this is a very large market for automotive batteries.”
Long-distance driving demands in the US also make high-capacity battery technology more valuable, something Panasonic says it sees as a competitive advantage.
Panasonic also sees the local sourcing of materials as a critical advantage, not only for resilience but for sustainability.
Allan says: “North America offers local sourcing of raw materials mined and processed in a responsible manner, often using renewable energy and other sustainability best practices.
“As a pioneer in this market, we are making a rapid succession of bold investments to strengthen our position in North America as the leading company driving the adoption of EVs.”
This localisation can reduce transport emissions, shortens supply chains and strengthens regional EV infrastructure.
Net zero in battery manufacturing
According to Panasonic, the production of EV batteries carries a significant carbon footprint, with nearly 90% of emissions occurring during material extraction, processing and logistics.
Panasonic aims to tackle this challenge head-on.
“Our Kansas plant is designed to operate as a Panasonic-designated net zero facility,” says Allan.
“We will minimise the amount of electricity needed for production and all aspects, from wiring to machinery and equipment, will support CO₂ emissions reduction.”
The plant will also shift to 100% local renewable energy sourcing within the next ten years.
Circular supply chains
Panasonic says its long-term strategy includes forming alliances with like-minded companies that support its climate goals.
One such example is Redwood Materials, a US-based battery recycling firm.
“Our partnership with Redwood Materials began in 2019 and together we are recycling waste materials from our Nevada plant,” explains Allan.
Panasonic has also signed purchase agreements for recycled cathode materials and copper foil, key components in lithium-ion batteries.
Other major sourcing partnerships include:
- Sila Nanotechnologies (US): Silicon anode materials
- Novonix (US): Artificial graphite with reduced CO₂ emissions
- Nouveau Monde Graphite (Canada): 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.”
