By Michael Elkins
Nikkei Asia has learned that Panasonic (OTC:PCRFY) will be investing "several billion dollars" in a second U.S. electric vehicle battery factory in Kansas to supply a new high-capacity battery for Tesla (NASDAQ:TSLA).
Panasonic's move comes as competitors from China, South Korea and Europe ramp up investment in additional production. The decision also follows Tesla’s April opening of a second EV factory in Texas.
Increasing production demands from Tesla were likely a factor in the decision for a new U.S. plant, along with Panasonic's progress on the new technology.
The site of the new facility was picked based on factors including its proximity to Texas and favorable tax treatment.
The Japanese company aims to massively increase EV battery production capacity, tripling or even quadrupling production by 2028. The company’s current production is roughly 50 gigawatt-hours per year.