Panasonic Energy, a subsidiary of Panasonic Holdings (6752.T), announced on Wednesday that Oklahoma is no longer under consideration for the location of a new electric vehicle battery plant in the United States.
This decision, impacting the battery supplier to electric vehicle manufacturer Tesla (TSLA.O), follows an earlier statement in April indicating the company’s contemplation of constructing a new plant in Oklahoma, which would have been its third in the United States.
In the previous year, Panasonic opted for Kansas as the site for its second U.S. plant over Oklahoma, with Kansas Governor Laura Kelly advocating for and securing state legislative approval for an incentive package of up to $1 billion.
“After careful deliberations, we have made the decision not to move forward with developing the site,” stated Panasonic Energy in an official release. The company emphasized that this choice would not have any impact on its existing operations in Nevada or Kansas.
While the Oklahoma Department of Commerce clarified that it had not engaged in specific talks with Panasonic for a potential site, it expressed openness to future opportunities.
In response to inquiries about the impact of slowing electric vehicle demand on Panasonic’s decision, the company affirmed its commitment to evaluating all possibilities for expanding its North American business.
The prevailing year has seen electric vehicle demand facing challenges due to elevated interest rates, prompting Tesla to engage in a price competition to stimulate sales.
Panasonic, a key supplier to Tesla, noted in October that its production in Japan experienced challenges linked to reduced adoption of high-end electric vehicles in North America. This decline was attributed to buyers in the region not benefiting from tax credits under the Inflation Reduction Act.
