Panasonic, one of Tesla’s battery suppliers, has announced plans for a new battery production facility in the United States to meet the increasing demand for electric vehicles. According to a statement made to Reuters, the plant could be built in Oklahoma, with Panasonic already entering an agreement with the State of Oklahoma. The Large-scale Economic Activity and Development (LEAD) Act would provide the company access to almost $700 million in capital investment rebates. While nothing else has been agreed upon, Panasonic is also requesting an additional $245 million for community and infrastructure upgrades.
See also: Tesla pushing Panasonic for faster development of new 4680 battery cell
The new facility in Pryor, Oklahoma, is expected to be worth $5 billion and cover 5 million square feet. It would supplement not only Tesla but also other companies in the U.S. hoping to take advantage of the Inflation Reduction Act that encourages the use of U.S.-built battery packs and domestic EV production. Companies such as BMW and Stellantis are reportedly interested in using Panasonic as a supplier and have discussed potential facilities in the U.S.
Panasonic has a long-standing relationship with Tesla, but it also relies on other EV companies that are reaching out for potential battery supply deals. In February, the company stated that it would cut its 2023 outlook by 12.5 percent and detailed how it would lean on automotive supply deals to help regain its footing. During the company’s Earnings Call earlier this year, Panasonic indicated that it would “focus on North America market where we can leverage advantages (high capacity) with established strong business foundation; Achieve profit growth by expanding sales of 2170 cells and commercializing 4680 cells.
See also: Panasonic builds electric vehicle battery factory for Tesla in United States
As Panasonic looks to grow, strong partnerships with automotive companies are crucial. Its relationship with Tesla demonstrates that it can handle large EV supply contracts and be a stable partner for companies looking to ramp up EV production. In July 2022, the company announced plans to build an EV battery plant in Kansas to help supply cells to Tesla as it expands electric vehicle manufacturing in North America. With this new plant in Oklahoma, Panasonic is poised to meet the growing demand for electric vehicles in the U.S. and become a key player in the EV market.
