Battery technology products and solutions supplier Panasonic Energy broke ground this week on a new manufacturing plant for lithium-ion batteries in De Soto, KS, positioning the firm to support America’s growing electric vehicle (EV) industry.
The project aims to increase production of “2170” cylindrical Li-ion batteries used in EVs. When mass production commences in 2025, the location will feature an annual total production capacity of 30 GWh.
"This groundbreaking in Kansas is an important step towards expanding our production capacity in North America to meet the rapidly growing demand for lithium-ion batteries," Kazuo Tadanobu, President, CEO of Panasonic Energy Co. Ltd., said in a company release. "With our leading technology, proven expertise, and the state of Kansas as a critical partner, we will continue driving the industry forward while pursuing a more prosperous and sustainable future for our society."
Panasonic Energy selected a site in the Astra Enterprise Park for the facility. Up to 4,000 jobs will be created as a result of the investment.
"Expanding production capacity in Kansas will enable us to continue delivering the highest quality batteries for our automotive partners as demand grows," said Kris Takamoto, Executive Vice President of Panasonic Energy Co., Ltd., Head of EV Battery Business. "We are already producing more than five million battery cells a day in North America, and the new facility in Kansas will further grow our capacity, efficiency and economies of scale which are critical to a net-zero emissions future."
The value global lithium battery market is projected to stand at $44.5 billion this year. Business insights firm Markets and Markets forecasts that the market will grow by a CAGR of 13.1% through 2031 to $135.1 billionas EVs are adopted on a wide scale.