Panasonic Expects Full Capacity at Kansas Battery Plant by 2025 Amid Tesla Demand Concerns

Panasonic's new battery plant in Kansas is on track to reach full production by 2025, according to Megan Myungwon Lee, the company's head of North American operations. The facility will supply battery cells to Tesla and other electric vehicle makers, including Lucid Group and Hexagon Purus. Panasonic aims to have a total US-based output capacity of around 73 GWh once the plant is fully operational.

Panasonic is facing delays in reaching full production at its De Soto battery plant in Kansas due to declining electric vehicle (EV) sales and unfavorable U.S. policies. The $4 billion plant, expected to create 4,000 jobs, was initially set to reach full production by March 2027 [1]. However, the company has not yet set a new target date for full production.

The slowdown in EV sales, particularly at Tesla, and the recent changes in U.S. policies, including the elimination of tax credits for EV purchases, have contributed to the delay. The plant, which is Panasonic's second large-scale battery plant in the U.S., is scheduled to start mass production soon, but the timeline for full production remains uncertain [2].

Panasonic's North American division has already hired 1,100 employees and built 1,100 housing units in De Soto. The city has offered incentives to Panasonic, including $229 million in public infrastructure projects, to attract the plant [1]. Despite the delay, the company remains committed to its long-term plans in the U.S.

Megan Myungwon Lee, Panasonic's North America CEO, stated that the company's commitment to the U.S. market remains strong. She noted that while the current policy environment might delay the timeline for ramping up to full production, Panasonic is sticking to its plan to hire the remaining 2,900 employees [4].

The De Soto plant is expected to produce lithium-ion batteries for Tesla and other EV makers, including Lucid Group and Hexagon Purus. Panasonic aims to have a total U.S.-based output capacity of around 73 GWh once the plant is fully operational [3].

References:
[1] https://lawrencekstimes.com/2025/07/11/panasonic-to-delay-production/
[2] https://seekingalpha.com/news/4466868-panasonic-to-delay-full-production-at-kansas-ev-battery-plant-nikkei
[3] https://asia.nikkei.com/Business/Electronics/Panasonic-opens-second-U.S.-battery-plant-in-state-of-Kansas
[4] https://www.aol.com/panasonic-megan-myungwon-lee-wants-091453152.html