Panasonic scouting U.S. sites for new battery factory by 2024

Panasonic Corp. is engaged in talks over the positioning for a brand new U.S. manufacturing facility that may provide Tesla Inc. and probably different electric-vehicle producers with next-generation lithium-ion batteries, individuals acquainted with the matter mentioned.

The longtime Tesla provider is taking a look at a number of areas for the multibillion-dollar manufacturing facility, together with one in Oklahoma and one other in Kansas, the individuals mentioned, asking to not be recognized as a result of the discussions are confidential. The plant might start working as quickly as 2024, they mentioned.

Although nonetheless at an early stage, the plans signify a daring step for Panasonic. Even because it has confronted excessive demand for batteries from Tesla, Panasonic has been slower to construct scale in contrast with rival suppliers LG Vitality Answer of South Korea and China’s Up to date Amperex Expertise Co.

Within the new U.S. plant, Panasonic plans to make a newly developed, larger and extra highly effective “4680” battery, one of many individuals mentioned. Panasonic could set up traces for different batteries on the new facility, as effectively, although that may rely upon buyer demand.

Due to the bigger quantity of 4680 batteries, fewer cells and associated components are wanted to energy an EV, main Elon Musk to tout the know-how as the important thing to unlocking $25,000 Teslas. Panasonic will begin mass manufacturing of 4680 batteries in Japan within the fiscal yr beginning April 2023. Forward of that, the corporate is establishing a prototype manufacturing line for the batteries, additionally in Japan.

Japan’s public broadcaster NHK reported earlier this month that Panasonic was taking a look at websites in Oklahoma and Kansas to construct its new plant. The areas would profit from being near the brand new manufacturing facility that Tesla is bringing on-line in Texas, the place it lately established its headquarters. A committee in Oklahoma’s Mayes County has been finding out a proposal to “entice a enterprise” to arrange operations, in keeping with a public doc posted earlier this month, although it didn’t determine the celebration.

The timing and funds for Panasonic’s U.S. manufacturing facility could shift going ahead based mostly partly on the corporate’s expertise constructing 4680 manufacturing traces in Japan over the months forward, one of many individuals mentioned. Panasonic can also be weighing potential plant areas based mostly on land and labor costs and the provision of state subsidies, the individual added.

Panasonic has not introduced plans to construct a brand new battery manufacturing facility within the U.S., a spokesperson for the Osaka-based firm mentioned Monday.

Kazuo Tadanobu, chief government officer of Panasonic’s power enterprise, mentioned in an interview with Bloomberg Information final week that the placement of any potential new factories can be evaluated based mostly on partnerships and the economics of sure areas. Nothing has been determined, he mentioned, including that in the interim Panasonic is targeted on constructing a “stable basis” for future 4680 manufacturing at its facility in Wakayama Prefecture.

Panasonic and Tesla have a longstanding relationship, with the 2 corporations collectively working the huge battery plant often known as the Gigafactory exterior of Reno, Nevada. Whereas Tesla plans to make the 4680 cells in-house, it has requested Panasonic to start producing them as effectively. The Japanese firm desires to promote the batteries to different automakers, and it’s unlikely Tesla will spend money on any Panasonic plant within the U.S., the individual mentioned.

Panasonic is betting that near a century of expertise making automotive batteries and its status for upholding security will give it an edge over rivals in producing 4680 cells, that are seen as significantly tough to mass produce.

The Japanese firm’s transfer comes as a slew of automakers and battery producers announce plans to ramp up capability to fabricate batteries within the U.S. in preparation for a coming wave of EVs.

In September, Ford Motor Co. and Korea’s SK Innovation Co. introduced plans to spend $11.4 billion developing an meeting plant and three battery factories in Tennessee and Kentucky, set to start coming on-line in 2025.

A couple of months later, Toyota Motor Corp. mentioned it is going to open its first battery manufacturing facility within the U.S. in North Carolina, investing $1.29 billion with plans to begin manufacturing additionally in 2025.