It has been more than 15 years since the world’s first mass-produced electric vehicles (EV) using lithium-ion batteries became commercially available. According to a 2024 report from the United Nations Economic Commission for Europe, approximately 23% of global greenhouse gas emissions are produced by the transport sector—and road transport accounts for 69% of that.*1 Given this reality, widespread adoption of EVs remains essential for advancing swift and effective countermeasures for climate change, and it would also be an important key to achieving a decarbonized society.
In this environment, Panasonic Energy Co., Ltd. (Panasonic Energy) began operations of a new factory in the state of Kansas in the U.S in July 2025 to produce cylindrical lithium-ion batteries for automotive use. This factory became the second automotive battery production base in North America for Panasonic Energy, following its Nevada factory.
The expansion of Panasonic Energy’s automotive battery business in North America embodies “CONTRIBUTION IMPACT,” which refers to contributing to CO2 reductions in present business fields—one of the impacts sought under Panasonic Group’s long-term environmental vision, “Panasonic GREEN IMPACT.” To ensure positive social impact, Panasonic Energy is working closely with local communities, creating new jobs, and fostering collaboration between industry and academic institutions in the region to develop a path toward a sustainable society.
Panasonic Energy’s Kansas factory, which has begun operations in De Soto, Kansas, has a site area that covers approximately 1.2 million square meters, making it one of North America’s largest automotive battery factories. The factory makes “2170” automotive cylindrical lithium-ion batteries and serves as a central role in the company’s two-pillar strategy (Japan and North America) to expand its automotive business. It’s the company’s second production base in North America, following the Nevada factory that began operations in 2017. The company plans to build a world-class production system with one of the largest manufacturing capacities by bringing both factories to full operation.
New factory in DeSoto, Kansas
The opening ceremony of the Kansas factory in De Soto was held on July 14, 2025 with approximately 400 people attending, including U.S. Senator Jerry Moran, Kansas Lieutenant Governor David Toland, De Soto Mayor Rick Walker, officials from state governments and the U.S. Congress, representatives from the Japanese government, corporate customers, and suppliers.
At the start of the ceremony, Panasonic Holdings Corporation Group CEO Yuki Kusumi stated: “The Kansas factory will build a sustainable future and provide more opportunities as Panasonic works to respond to global demand. Through job creation, collaboration with academic institutions, and technological innovation, this factory symbolizes building the future together with the local community. That is a source of pride for Panasonic. We sincerely thank the State of Kansas and our partners for their support.”
U.S. Senator Jerry Moran of Kansas stated: “Panasonic’s decision to locate this plant near De Soto is a stamp of approval we appreciate. This investment is a bright indication of what Kansans can achieve and will offer the world—creating new career opportunities in advanced manufacturing and technology.” Other officials from the state governments and the U.S. Congress also expressed high expectations for the factory.
Panasonic Energy began production of EV batteries in Japan. The company subsequently expanded its production of high-performance, high-quality cylindrical lithium-ion batteries for the North American market ahead of the industry, contributing to the development of the EV market.
Leveraging approximately 30 years of experience in lithium-ion battery production as well as the technology and know-how accumulated over eight years of production at the Nevada factory, Panasonic Energy aims to achieve reliable production quickly and to advance manufacturing methods at the Kansas factory. Through optimizing layout design and using smart automation/labor-efficiency measures, overall factory productivity has been improved by about 20% compared to the Nevada factory, helping create a high level of cost competitiveness. The factory is also planning to introduce products using new materials that will increase battery capacity by approximately 5%.
At the same time, Panasonic Energy is working to reduce the environmental impact associated with its battery production in North America, including the Kansas factory. The company has set a target to reduce the carbon footprint (CFP)*2 of its lithium-ion batteries for automobiles by 50%*3 by fiscal 2031*4 compared to fiscal 2022 levels. Since over 80% of a product’s CFP*5 originates upstream in the supply chain—such as resource mining and raw material processing—Panasonic Energy is promoting more effective CO2 reduction measures by establishing systems for local sourcing, utilizing recycled materials, and reducing the use of rare metals.
*2. Carbon footprint: A figure that expresses the amount of greenhouse gas emissions in terms of CO2 throughout the entire life cycle, from raw material procurement to disposal and recycling
*3. CO2 emissions per unit capacity of automotive Li-ion batteries produced at the North American factories
*4. Fiscal 2031 refers to the period from April 2030 to the end of March 2031
*5. Estimated by Panasonic Energy in fiscal 2022
Panasonic Energy has supplied approximately 20 billion lithium-ion batteries, equivalent to powering about 4 million EVs since production began. No vehicle recalls have occurred that have been attributed to the company’s batteries during this period. Building on this track record, the company is striving to contribute to the realization of a decarbonized society by ensuring a reliable battery supply through local production in North America and popularizing EVs further.
Regarding the Kansas factory and its role, Yasuaki Takamoto, CEO of Panasonic Energy Corporation of North America, stated: “Today, we are the North American market leader in EV lithium-ion battery cells. Our growth is fueled by advanced technologies and a commitment to sustainability. This factory will produce our latest generation 2170 cylindrical lithium-ion battery cells, and our customers will soon benefit from these cells produced right here in Kansas.”
Yasuaki Takamoto, CEO of Panasonic Energy Corporation of North America
The Kansas factory’s operation also represents the largest economic development project in the state’s history. In addition to as many as 4,000 direct jobs, the factory is expected to create around 8,000 new jobs including suppliers and related companies. The economic boost for the region is expected to be around $2.5 billion per year.
Panasonic Energy aims to contribute to the sustainable development of the local community through the operation of its Kansas factory. In Kansas, where agriculture is the primary industry, many young people have sought employment outside the state after finishing college, creating a regional challenge. The company is convinced that the aspirations of local people working to create an environment where young people can pursue their dreams and work with enthusiasm resonate with its mission.
In fact, state and county officials in charge of education have provided enthusiastic support, including requests for collaboration in workforce development. To create sustainable employment opportunities for high-tech talent and to promote industrial growth, Panasonic Energy is advancing partnerships with academic institutions in the region. Working with the University of Kansas, Panasonic Energy is aiming to develop battery-related technologies and specialists in this field.
In addition, as part of our community engagement efforts, Panasonic North America’s brand ambassador, Olympic champion Katie Ledecky, visited the Cedar Trails Exploration Center (CTEC) Center for Advanced Professional Studies (CAPS) in Lenexa, Kansas in September. She interacted with students there who are poised to lead the next generation in fields such as engineering and science.
Kristen Walters, Vice President of Human Resources at Panasonic Energy Corporation of North America, spoke about the impact the Kansas factory has on the region: “We’re not just building a factory; we’re creating a future for generations of people—investing in talent and community to drive innovation and build the world’s most advanced technologies.”
Kansas factory entrance displaying employee photos and their stories.
Panasonic Energy aims to help reduce carbon emissions around the world while moving forward with local communities to expand its automotive battery production business. This embodies the “CONTRIBUTION IMPACT” pillar of the group’s long-term environmental vision, “Panasonic GREEN IMPACT.”
At the opening ceremony, Shigeo Yamada, Japan’s Ambassador to the United States, expressed his high expectations for Panasonic Energy’s initiatives and potential: “Today, the completion of the Kansas battery factory shows that collaboration toward a sustainable society has entered a new stage. We expect international cooperation toward the future to accelerate even further.”
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