Panasonic Powers Up in Kansas with $4Bn Battery Bet

Panasonic opens a $4B battery plant in Kansas, a major step in reshaping the U.S. EV supply chain.

18 Jul 2025

America’s electric future just got a high-voltage boost.

Panasonic has flipped the switch on a $4 billion gigafactory in De Soto, Kansas. It is the largest private investment in state history and a key spark in the race to dominate electric vehicle battery production. The plant is expected to create more than 4,000 jobs and supply batteries for major automakers like Tesla.

This is not just a factory. It is a strategic shift.

With the Inflation Reduction Act pressuring automakers to source components domestically to unlock federal tax credits, Panasonic’s move signals a deeper pivot from overseas supply chains to homegrown infrastructure. The factory will produce advanced cylindrical lithium-ion batteries, giving U.S. EV makers a crucial leg up in scaling production.

Kansas landed the plant by offering more than $800 million in incentives. The deal highlights the scramble among states to attract clean tech manufacturing. “This factory isn’t just about batteries. It’s about America reclaiming its edge in energy innovation,” a Panasonic executive said.

The project also responds to calls for a stronger domestic supply chain. Companies that fail to localize risk losing out as federal policy sharpens its focus on American-made materials. Rivals like LG Energy Solution and SK On are following suit, turning the Midwest into a battery belt.

Still, hurdles remain. The industry must train thousands of workers and secure a reliable flow of critical minerals like lithium and graphite. But many see these obstacles as fuel for broader investment in mining, workforce development, and innovation.

Panasonic’s Kansas plant marks a turning point. The age of planning is over. Execution has begun. As gigafactories rise across the country, the electric revolution is shifting from ambition to reality, and the U.S. is ready to plug in.