What’s So Special About Panasonic’s 32 GWh Largest EV Battery Plant in North America?

The USA Leaders

July 16, 2025

De Soto –  Panasonic’s Largest EV Battery Plant Rises in Kansas, but Can It Save America’s EV Market?

As the U.S. EV tax credit policy inches toward expiration this September, Panasonic has made a bold, strategic move: launching the largest EV battery plant in North America right in the heartland—De Soto, Kansas.

But with EV sales slowing, incentives evaporating, and skepticism rising, is this $4 billion megafactory a lifeline—or a leap of faith? Can it really lower EV costs in the U.S. and Canada? Can it outpace China’s battery grip? And above all, can it power the future without subsidies?

This isn’t just a story of industrial scale—it’s a test of economic timing, technological firepower, and supply chain nationalism. And the world is watching.

Panasonic Bets Big: 32 GWh Capacity to Electrify North America

Set across nearly 300 acres, Panasonic’s Kansas facility is designed to produce 32 gigawatt-hours (GWh) of battery capacity annually, enough to power up to 500,000 electric vehicles per year.

But this isn’t just about size.

• 20% higher productivity than Panasonic’s Nevada Gigafactory

• 5% higher energy cell capacity—more range, less weight

• Advanced automation, AI-driven manufacturing, and energy efficiency baked in

• Full ramp-up across four production lines by 2026

In the shadow of shrinking incentives, Panasonic is choosing scale, precision, and domestic proximity as its competitive weapons.

Will This Giant Factory Actually Lower EV Costs?

That’s the billion-dollar question. And the answer—while not immediate—is promising.

Here’s how the largest EV battery plant is engineered to bring down battery and EV costs in North America:

• Higher Efficiency = Lower Costs

With 20% higher productivity, Panasonic aims to drive per-cell cost reductions, which can shave thousands off vehicle sticker prices.

• Localized Supply Chains

By producing batteries domestically, Panasonic cuts down on import costs, tariffs, and geopolitical risk—all of which bloat the EV price tag today.

• Redwood Materials Partnership

Panasonic will use recycled materials, including 100% recycled cobalt and 30% recycled lithium/nickel, keeping costs lower and inputs more secure.

Bottom line: If fully optimized, this plant can help automakers like Tesla, Toyota, and GM lower EV prices for American and Canadian buyers by thousands, especially in the mass-market segment.

A $4 Billion Economic Engine for the Midwest

This isn’t just Panasonic’s largest North American plant—it’s the biggest private investment in Kansas’s history.

• 4,000 direct jobs, 8,000 including indirect roles

• $2.5 billion annual economic impact projected

• Deep partnerships with local universities to train battery engineers and R&D talent

• A major magnet for new EV supplier ecosystems in the Midwest

According to Kansas Governor Laura Kelly:

“Panasonic’s largest EV battery plant is not just an investment—it’s an anchor for American energy independence.”

Closed-Loop Supply Chain: Powered by Recycling

Panasonic won’t do recycling on-site, but it’s doubling down on a circular battery economy through a strategic alliance with Redwood Materials.

Redwood will supply the Kansas plant with:

• Recycled cathode materials

• Copper foil derived from battery scrap and end-of-life packs

This partnership means Panasonic can rely less on mined raw materials and more on clean, domestic, recycled content—a major sustainability and cost advantage.

Redwood’s goal? Enough recycled material to power 100 GWh of production by 2025. That’s three times the size of this Kansas plant alone.

But There’s a Storm Brewing: EV Demand Is Cooling

Despite its promise, the timing is risky.

• EV demand in the U.S. is slowing, especially for higher-priced models

• Federal EV tax credits—a key buyer incentive—expire in September 2025

• Tesla and other key Panasonic customers are scaling back orders

• Panasonic has delayed its full production ramp-up to 2027

In a tight market with fewer subsidies, will automakers still bet big on domestic battery supply? Or will price-sensitive buyers turn back to gas—or to cheaper Chinese imports?

This Kansas plant must compete not just with Nevada but with BYD, CATL, and LG across three continents.

Kansas vs. Nevada: A Tale of Two Panasonic Sites

Both are essential, but Kansas is more future-forward, aligning with the energy transition and local economic development goals.

Global Context: Can America Compete with China?

As of 2024, China controls 85% of global EV battery production capacity and over 90% of cathode/anode materials. Even with a dozen U.S. plants coming online, the competition is brutal.

But progress is real:

• U.S. battery capacity grew 50% in 2024

• U.S. EV battery demand exceeded 1 TWh

• Panasonic, LG, and SK On are now leading North American suppliers

However, over 30% of U.S. EV batteries are still imported. That dependency has to shrink—and fast.

Panasonic’s Kansas plant is a critical wedge in breaking that cycle.

A Strategic Pivot Point for the U.S. EV Industry

Panasonic’s De Soto factory is a signal to the global market: North America is not backing down from the energy transition, even as policy support fades.

The largest EV battery plant is more than a gigawatt. It’s about:

• Energy independence

• Supply chain sovereignty

• Next-gen innovation

• Cost reduction that consumers will actually feel

But the next two years will test that vision. If demand rebounds, if supply chains stabilize, and if cost advantages materialize, this plant could become the beating heart of America’s electric future.

Final Thought: A Factory, or a Fork in the Road?

Is Panasonic’s Kansas megafactory a late bet—or a perfectly timed pivot? Will it rescue EV affordability in North America—or become a cautionary tale about building big in uncertain times?

The answers will shape the next decade of energy, mobility, and manufacturing policy in the U.S. and beyond.

But for now, one thing is clear: Panasonic’s largest EV battery plant has drawn a line in the sand—and it runs through Kansas.

Parag Ahire