Panasonic Holdings Corp., a supplier to electric car maker Tesla, is considering spending about $4 billion to build an additional EV battery plant in the United States, according to people familiar with the matter.
The company is considering Oklahoma for a new plant, but there is no guarantee that a deal will be reached, the people said.
EV makers, including Tesla, are demanding more batteries from their suppliers as they try to increase production and reduce long wait times for many popular EV models. operates a battery factory.
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Panasonic’s new factory will be built on top of a $4 billion EV battery plant that the Japanese company announced in July it was planning to build in Kansas. Those familiar with Panasonic’s plans described the two plants as twins with similar capacity.
A spokesman for Oklahoma Governor Kevin Stitt declined to comment.
In April, Tesla began delivering vehicles from its new EV factory in Austin, Texas. Kansas and Oklahoma are convenient locations to supply the Tesla plant in Texas.Also, EV start canoe Inc., which announced a supply deal with Panasonic last year, has revealed plans to build a factory in Oklahoma.
|PCRFY||Panasonic Holdings Co., Ltd.||8.24||-0.02||-0.24%|
|GOEV||Canoe Co., Ltd.||3.49||-0.22||-5.93%|
President Biden’s Inflation Reduction Act requires at least 50% of electric vehicle batteries to be manufactured in the United States to qualify for federal discounts.
Panasonic says one of its priorities in the U.S. is to commercialize a new type of lithium-ion battery that Tesla CEO Elon Musk touts as “the most advanced cell in the world.” says.
The cylindrical 4680 battery (46mm in diameter and 80mm in height) is larger and more powerful than other batteries Panasonic currently supplies to Tesla. Panasonic and Tesla say the technology could improve the overall economics of EVs.
Panasonic’s rivals are also opening new factories in the United States. General Motors plans his $2.6 billion battery plant in Lansing, Michigan with his South Korean partner LG Energy Solutions.
|GM||General Motors Corporation||39.23||-1.20||-2.96%|
Contemporary Amperex Technology, China’s largest EV battery maker, had aimed to announce plans for a plant in North America as early as this month, but the announcement was postponed due to recent US-China tensions.
Both Kansas and Oklahoma have put together incentive packages aimed at attracting Panasonic investment and the jobs that come with it.
In April, the Oklahoma Senate approved a bill that would give up to $698 million in rebates and incentives to large manufacturing facilities run by unnamed companies.
Senate Appropriations Committee Chairman Roger Thompson said in a statement at the time, “This initiative aims to attract companies that will invest a minimum of $3.6 billion and create at least 4,000 new jobs within five years. There is
Governor Stitt said it would be “one of the largest factories in the entire country, a giant, giant factory.”
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