Panasonic May Allegedly Build Another Battery Factory For Tesla In The United States

Japan's Panasonic Holdings is discussing setting up another electric vehicle battery plant in the U.S. worth about $4 billion to meet the needs of local car companies, according to people familiar with the matter, according to a number of comprehensive media reports.

The people familiar with the matter said that Panasonic has begun to consider Oklahoma as the preferred address for the new plant, but the plan is still under discussion and the actual situation will have to wait for an official follow-up announcement.

Before that, Panasonic has been operating a battery factory with Tesla in Nevada, but the capacity is still difficult to make Tesla satisfied. Recently several electric car manufacturers are in full swing to increase production, the lack of supply of batteries and other components make them trapped in the capacity bottleneck.

It's worth noting that the Oklahoma battery plant could cost the same as Kansas, both at $4 billion. Those who know Panasonic's plans describe the two plants as "twins" with similar production capacity.

Intended to reduce transportation costs

As a long-term battery supplier to Tesla, Panasonic's site selection considerations are primarily transportation and plant construction costs.

Kansas and Oklahoma are located north of Texas, with Ohio bordering Texas, and the site of the battery plant would provide considerable convenience to Tesla's Texas super plant.

Panasonic says one of its priorities in the U.S. is to commercialize what Musk calls "the world's most advanced battery" - the 4680 battery - as soon as possible. In June, Panasonic has delivered samples of the 4680 battery to Tesla, and the two factories are expected to start production in 2024.

In addition, electric car startup Canoo also has plans to build a car factory in Oklahoma. Canoo signed a battery supply agreement with Panasonic last year and is expected to get supplies for this proposed plant.

Early clues?

In terms of the cost of building the plant, some market analysis has linked a previous rumor to Panasonic.

In April, the Oklahoma Senate approved nearly $700 million in tax rebates and subsidies for an in-state manufacturing plant, but did not mention which company the plant belonged to.

At the time, the chairman of the state Senate Appropriations Committee revealed that the company would invest a total of more than $3.6 billion over five years and create more than 4,000 jobs.

This investment amount is not difficult for outsiders to associate with the current Panasonic proposed to build this plant.

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John Murphy

John Murphy is the founder of TOPCARS Tesla Aftermarket Accessories, as well as an investor in Tesla and owner of the Model Y. He posts about Tesla news while running the site on a daily basis.

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