In an article published in Electrive this month, Japanese electronics multinational Panasonic is reportedly increasing its investment in its upcoming battery factory in De Soto, Kansas that will produce 4680 cells for Tesla’s electric vehicles (EVs). A final investment decision has not yet been made but is expected by the end of 2024.
What’s driving the growth of EVs in the U.S?
Rising energy costs and more environmentally-conscious consumers are fueling the demand for EVs. In three years, the share of EVs in total car sales has tripled.
According to the International Energy Agency, market share of EVs started at only 4% and has reached 14% as of 2022. The deployment of EVs is expected to reduce the use of 5 million barrels of oil daily by the year 2030.
What’s next for Panasonic in De Soto?
According to Electrive, Panasonic is set to produce an additional of more than 2,500 cylindrical battery cells in Kansas for Tesla. This is on top of the Japanese company’s already pledged 2,170 cylindrical batteries.
Panasonic and Tesla have anticipated such growth almost two decades earlier. These two major conglomerates started pooling together talent, technology, and resources in 2009.
