Metal Tech News - July 16, 2025
A new link in America's electric vehicle supply chain was forged with the July 14 grand opening of Panasonic Energy's lithium-ion battery gigafactory in Kansas – a milestone that strengthens the nation's EV supply chain.
"The opening of our Kansas Factory marks a major milestone in our journey to scale advanced battery production in the United States," Panasonic Energy CEO Kazuo Tadanobu said.
Built on a 300-acre site just outside of Kansas City, Panasonic Energy's new battery plant will have the capacity to produce 32 gigawatt-hours (GWh) of batteries, enough for roughly 400,000 average-sized EVs per year. This makes the new factory one of the largest automotive battery plants in North America.
Having partnered with Tesla to build the battery plant at Gigafactory Nevada, which opened in 2017, Panasonic Energy is a pioneer of the transition to EVs in the U.S. At full capacity, the Kansas facility and Gigafactory Nevada will together produce up to 73 GWh of batteries annually, enough to power more than 900,000 EVs.
The company said this expanded capacity will help fill the battery needs for American automakers expanding their EV production.
With nearly three decades of lithium-ion battery expertise, including the production of more than 11 billion cells at Gigafactory Nevada over the past eight years, Panasonic Energy is well-positioned to ramp up stable and high-quality production in Kansas.
Based on this experience, the company has introduced labor-saving production lines to the Kansas battery factory, which are expected to result in 20% higher productivity compared to its battery plant at Gigafactory Nevada.
The company also expects that the batteries produced in Kansas will soon have 5% greater capacity, due to the introduction of advanced materials.
In 2022, Panasonic Energy announced that it would source high-nickel cathode material from Redwood Materials, an American battery materials recycling company founded by former Tesla Chief Technology Officer JB Straubel, for the batteries to be produced at the new gigafactory in Kansas.
These high-nickel cathodes are favored for their higher energy density, making them ideal for extending the range and performance of next-generation EVs.
In addition to the sustainability and range credentials associated with the recycled materials delivered by Redwood, this marks the first time cathodes will be produced in North America at gigafactory scale and used in U.S. battery cell manufacturing.
The opening of a battery factory in America's Heartland that uses cathode material provided by Redwood adds additional links to the domestic EV supply chain, while at the same time strengthening Panasonic Energy's competitiveness in North America and demonstrating the company's commitment to sustainability.
At the local level, the factory represents the largest economic development project in Kansas history.
Kansas factory will create up to 4,000 direct jobs, and roughly 8,000 jobs when you factor in the new employment opportunities spurred by the increased economic activity surrounding the plant.
Panasonic Energy is also collaborating with institutions such as the University of Kansas to promote long-term partnerships between industry and academia, focusing on technological advancements and specialized talent development.
The economic growth and training are expected to ripple out from Kansas Factory to the wider U.S. economy through the cultivation of a skilled workforce and building out the mines-to-EVs supply chains in the U.S.
"This achievement would not have been possible without the strong support of our local partners and the State of Kansas. Together, we are accelerating the shift to electrification, reinforcing regional supply chains, and nurturing the next generation of battery talent," Tadanobu said during the Kansas Factory opening. "This facility represents not only our commitment to the region but also a foundation for long-term collaboration and innovation in the U.S."
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