Panasonic will build a Tesla EV battery factory in Kansas

Panasonic Holdings Corp. will invest billions of dollars in a Kansas factory to supply a new high-capacity battery for Tesla’s electric vehicles, Nikkei reported on Wednesday.

The Japanese conglomerate aims to triple or quadruple EV battery production capacity by fiscal year 2028 from the current level of around 50 gigawatt hours per year, according to the report.

Earlier in June, Reuters reported that Panasonic was scouting potential factory sites in Kansas and Oklahoma to supply batteries to the US electric carmaker’s Texas plant.

Panasonic already has a factory in Nevada that supplies smaller batteries to Tesla.

Panasonic and Tesla did not immediately respond to Reuters requests for comment. Kansas and Oklahoma government officials were not immediately available for comment.

The company, which has been Tesla’s battery supplier for more than a decade, also said it shipped samples of its more powerful 4680-size battery to the electric carmaker.

The new battery is around five times larger than those Panasonic currently supplies, meaning the US electric carmaker could be able to cut production costs and increase vehicle range.

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