Panasonic Opens US$4bn EV Battery Gigafactory in Kansas
Panasonic opens one of the largest battery manufacturing sites in North America with the launch of its US$4bn facility in De Soto, Kansas.
The 4.7 million square foot gigafactory starts mass production of cylindrical lithium-ion 2170 battery cells on 14 July.
Built on a 300-acre site, about the size of 225 American football fields, the plant aims to reach an annual output of around 32 gigawatt hours (GWh), with capacity to power about 500,000 electric vehicles (EVs).
The project is one of Panasonic’s largest single investments in its 107-year history and is being described as the most substantial economic development initiative ever undertaken in Kansas.
From a sustainability perspective, it represents an industrial shift towards electrification and clean energy in vehicle manufacturing.
Dual-region production strategy supports US decarbonisation
The Kansas factory forms part of Panasonic Energy’s dual-region manufacturing strategy for North America.
It complements the firm’s existing Nevada gigafactory, which has operated since 2017 and currently produces around 41GWh annually.
That site has already delivered more than 11 billion battery cells and employs more than 4,000 workers.
When fully operational, the combined annual output of the Kansas and Nevada facilities is expected to reach approximately 73GWh.
This output supports the growing demand for electric vehicles in North America and underlines the firm’s role in reinforcing regional supply chains and reducing carbon emissions in transportation.
“The opening of our Kansas Factory marks a major milestone in our journey to scale advanced battery production in the United States," says Kazuo Tadanobu, Chief Executive Officer of Panasonic Energy.
This achievement would not have been possible without the strong support of our local partners and the State of Kansas. Together, we are accelerating the shift to electrification, reinforcing regional supply chains, and nurturing the next generation of battery talent.”
By locating production closer to US automotive manufacturing hubs, Panasonic reduces emissions associated with long-distance transport of battery components and helps bolster domestic energy infrastructure.
Advanced production lines prioritise efficiency and safety
The Kansas facility incorporates labour-saving production lines that Panasonic says offer approximately 20% higher productivity than those at the Nevada site.
These innovations, designed with sustainability in mind, aim to make manufacturing more resource-efficient while scaling up output.
The company’s lithium-ion 2170 cells boast an energy density of 800 watt-hours per litre (Wh/L), a measure of how much energy can be stored in a given volume.
These cells have powered around 3.7 million EVs to date, with nearly 19 billion units shipped as of March 2025. Panasonic maintains a strong safety record, with no vehicle recalls linked to its battery cells.
Future plans include deploying advanced materials to increase cell capacity by approximately five percent, which would enhance the performance and range of EVs while reducing the need for raw materials, a central concern in the sustainability of lithium-ion batteries.
"We believe that we will continue to succeed if we scale our business in a way that is sustainable for our people, sustainable for our business, sustainable for our industry, and sustainable for our planet,” explains Allan Swan, President and Chief Operating Officer of Panasonic Energy North America.
This approach signals Panasonic’s intent to address the full spectrum of sustainability, from environmental impact to workforce development and industrial resilience.
Jobs, partnerships and a broader economic shift
Beyond its environmental contributions, the Kansas plant also carries economic weight.
It is projected to create up to 4,000 direct jobs and a further 8,000 roles across supplier and related industries.
These figures position the factory as a major contributor to regional economic revitalisation and to the reshoring of advanced manufacturing jobs in the US.
Panasonic Energy is also working with institutions such as the University of Kansas to build long-term academic partnerships.
These collaborations aim to foster specialised talent and further technological development in energy storage and sustainable manufacturing.
The physical scale of the site is striking, three passenger aircraft could fit nose-to-tail within the central corridor of the facility.
Walking every square foot of the premises would take almost 13 continuous days.
Panasonic’s move arrives as carmakers expand EV production to meet customer demand and comply with evolving state regulations.
While there is no federal mandate to phase out petrol cars, states like California have committed to banning the sale of internal combustion engine vehicles from 2035.
“Politics is the art of the possible, and the grand opening of the Panasonic plant in De Soto ushers in a new era for Kansas, a proud step forward in our mission to bring manufacturing jobs back to America, where they belong,” says Ty Masterson, President of the Kansas Senate.
Panasonic’s Kansas investment ensures it remains a competitive and reliable partner to global car manufacturers navigating that transition.
Worldwide, the company manufactures 70 battery cells every second, producing more than six million cells per day.
These numbers reflect not only the scale but also the pace at which Panasonic contributes to global electrification.
Rick Walker, Mayor of De Soto, sees personal and civic transformation in the project: “As someone who grew up in De Soto, I've spent years driving past this site when the lights were out and the future was uncertain.
"Seeing it come back to life, with Panasonic Energy as the anchor, is deeply meaningful.
"There’s a new energy in De Soto, not just in batteries, but in the spirit of the community and the momentum we’ve created together.
"It’s a powerful moment for our city, and one our community can be proud of.”
