Panasonic to invest billions in Kansas with new Tesla battery plant

Panasonic to invest billions in Kansas with new Tesla battery plant

Panasonic Holdings is set to invest several billion dollars in Kansas with a new electric vehicle battery factory.Gov. Laura Kelly announced the new factory will be located in De Soto.A news release from the governor’s office said the project is expected to create up to 4,000 new jobs and result in an investment of up to $4 billion, which represents the largest economic development project in Kansas history.The project is still pending approval by Panasonic Holdings Corporation board of directors.The deal comes amid a flurry of competition from countries and companies trying to meet the rising demand for electric vehicles.News outlet Nikkei reported the Japanese company picked the new facility’s site based on factors including its proximity to Texas and favorable tax breaks. Kansas reportedly beat out Oklahoma as a candidate for the new battery factory. Panasonic has previously announced a desire to more than triple its EV battery production capacity by the 2028 fiscal year. Panasonic’s first U.S. plant in Nevada, the Gigafactory 1, is jointly operated with Tesla. The previously mentioned tax breaks that likely enticed the Japanese company are tied to the largest-ever taxpayer-funded incentives that Kansas passed in February of 2022.At the time of the bill’s passing, Kelly was pushing for permission to offer massive subsidies to an unknown company. Despite not knowing what the mystery company was at the time, the Republican-controlled state senate approved a bill that could offer a single company hundreds of millions of dollars in breaks once this year and once in 2023.In early June, the De Soto planning commission examined proposals for redevelopment plans at the Sunflower Ammunition Plant. The proposals’ massive size, $4 billion, matches the size and scope of Panasonic’s new factory.

Panasonic Holdings is set to invest several billion dollars in Kansas with a new electric vehicle battery factory.

Gov. Laura Kelly announced the new factory will be located in De Soto.

A news release from the governor’s office said the project is expected to create up to 4,000 new jobs and result in an investment of up to $4 billion, which represents the largest economic development project in Kansas history.

The project is still pending approval by Panasonic Holdings Corporation board of directors.

The deal comes amid a flurry of competition from countries and companies trying to meet the rising demand for electric vehicles.

News outlet Nikkei reported the Japanese company picked the new facility’s site based on factors including its proximity to Texas and favorable tax breaks.

Kansas reportedly beat out Oklahoma as a candidate for the new battery factory. Panasonic has previously announced a desire to more than triple its EV battery production capacity by the 2028 fiscal year.

Panasonic’s first U.S. plant in Nevada, the Gigafactory 1, is jointly operated with Tesla.

The previously mentioned tax breaks that likely enticed the Japanese company are tied to the largest-ever taxpayer-funded incentives that Kansas passed in February of 2022.

At the time of the bill’s passing, Kelly was pushing for permission to offer massive subsidies to an unknown company. Despite not knowing what the mystery company was at the time, the Republican-controlled state senate approved a bill that could offer a single company hundreds of millions of dollars in breaks once this year and once in 2023.

In early June, the De Soto planning commission examined proposals for redevelopment plans at the Sunflower Ammunition Plant. The proposals’ massive size, $4 billion, matches the size and scope of Panasonic’s new factory.

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