Panasonic is eyeing Oklahoma as the home of its next lithium-ion battery plant, according to a report from the Wall Street Journal.
The proposed venture, which is expected to supply Tesla with a range-boosting high-capacity battery, is part of a move to bring car manufacturing to the ground as car companies and suppliers try to mitigate inflation, geopolitical conflict and the scarcity of raw materials. needed to manufacture electric vehicles.
Panasonic is working on a battery that is expected to increase power capacity by five times, increase range by more than 15% and reduce production costs.
In July, the Japanese electronics maker announced plans to build a battery plant $4 billion in Kansas which will manufacture and supply lithium-ion batteries to electric vehicle manufacturers. That project, which represents the largest economic development project in Kansas history, is slated to be larger than the Gigafactory that Tesla operates in Sparks, Nevada, which is already one of the world's largest lithium-ion battery factories.
Automakers and suppliers have announced an investment of more than $38 billion through 2026 to boost battery production in the US, according to AlixPartners. Those projects, which won't start production until mid-decade, include the largest economic development projects in history in North Carolina and Georgia. Several other electric vehicle plants are in the southern and plains states, such as Tennessee and Oklahoma.
The first battery factory in Toyota in the US, the $1.3 billion plant near Greensboro, North Carolina is due to open in 2025. Hyundai is investing $5.5 billion to build an electric vehicle and battery manufacturing plant in Georgia. Rivian is also building a $5 billion factory in Georgia and newcomer Canoe, which has moved its headquarters to Bentonville, Arkansas, has plans to build an electric vehicle factory in Oklahoma. The all-electric ID.4 from VW it is now being assembled at its Chattanooga, Tennessee plant.
Shortening the supply chain will ultimately help manufacturers control costs and reduce reliance on foreign sources for raw materials. The Inflation Reduction Act passed by Congress this month is expected to accelerate the development of the domestic electric vehicle industry by providing manufacturers with $40 billion in tax credits.
