Panasonic is likely to invest up to $4 billion in a new Tesla battery plant in Kansas.
It’s all about the batteries. While there have been other challenges in the supply chain of late, the biggest barrier to accelerating electric vehicle sales growth year after year is the lack of batteries. That goes for Tesla as well as other car manufacturers. Tesla’s sales have grown like a mobster, but new orders won’t be delivered until a year from now due to the company’s major supply-demand imbalance. The solution: more battery factories!
Kansas Governor Laura Kelly, eager to take credit for the factory that will no doubt come to her state in part because of cheap labor, announced the new factory yesterday. The battery factory, which will be located in De Soto, Kansas, is expected to create 4,000 jobs in the community – at retailers, in the service sector, at suppliers, etc. The factory is also expected to create 16,500 construction jobs. If that’s true, it will be the largest economic development project in Kansas, not just this year, not just this decade, not just this century, but in all of Kansas history. (Side note: Kansas is not known for major economic development projects. It is better known for its wheat, corn, sorghum and soybeans†
Photo by Kyle Field | CleanTechnique.
However, the plant has not yet been fully approved as the board of directors of Panasonic Holdings Corporation has yet to approve the project. Why Governor Laura Kelly came out and announced the project before that happened is unclear. Maybe she just wanted to break the news before someone else leaked it (and claimed credit), or maybe it’s a way to pressure the Panasonic board to approve the project.
The batteries produced in Kansas will certainly be sent to Tesla Giga Texas to be placed in electric cars, trucks and SUVs built there.
“As the largest private investment in Kansas history and one of the largest EV battery manufacturing plants of its kind in the country, this project will transform our state’s economy, creating a total of 8,000 high-quality jobs that increase opportunities.” will help to make better life for themselves and their children”, said Kansas Governor Laura Kelly. “Winning this project shows that Kansas has what it takes to compete on a global scale — and that our pro-business climate is driving the technological innovation needed to achieve a more prosperous and sustainable future.”
Again, cheap labor is also likely involved, such as in places like China and Taiwan. Poor regions demand less personnel expenditure and thus lower production costs and higher profits.
Plus, Kansas is becoming a bit of a battery manufacturing hub. It already employs 1,300 people in the battery manufacturing sector, and it ranked second in the nation for employment and wage concentration in the sector in 2021. Presumably it follows only Nevada, where Tesla built its first battery-gig factory.
“With this significant development, Kansas is recognized around the world for our talented workforce, innovative environment and quality of life,” said US Senator Jerry Moran. Or something. “Panasonic will bring thousands of high-paying, high-quality jobs to our state, providing tremendous economic benefits to local businesses and our communities for decades to come. With the goal of making Kansas a destination for industry, defense, education, science, technology, engineering and innovation, we will keep our students, their knowledge and intellect in Kansas.” That is definitely true.
Midwestern state politicians were eager to highlight all sorts of good stats in this once-in-a-lifetime announcement. As part of that, they emphasized that Kansas more generally is becoming a bit of a Midwestern tech center, with a growing number of tech jobs in the Kansas City area. “The Kansas City region is the third fastest growing technology market in the US and is a core of engineering, technology and automotive manufacturing expertise. With a strong talent pipeline and advanced training programs, the Kansas City market employs nearly 21,000 employees who contribute to the $19 billion KC transportation industry.” Third fastest growing technology market? Okay, Kansas definitely deserves some credit for doing something right and attracting tech companies, researchers, and workers to the Sunflower State.
The announcement adds that Panasonic Energy has manufactured and shipped more than 6 billion battery cells in the US. that is billion with a “b”.
One of the best things about an announcement like this is that it offers the opportunity – through words, jobs and real-world visibility – to inform a lot more of the public that the future is electric. Growing awareness of the transition to electric vehicles is driving growing consumer interest, leading to more battery factories. “The electric vehicle industry is expected to grow eight-fold in less than 10 years, providing an incredible opportunity for states, communities and energy partners to support leading, innovative technology companies,” said David Campbell, Evergy president and CEO. from. On behalf of the business community in our region, we are delighted to welcome Panasonic Energy to Kansas and the Kansas City area, and we look forward to supporting your long-term success.” While Evergy sounds like an EV related company or organization, it’s basically the utility company in that region. Evergy certainly lobbied a bit to get this factory in town and is happy to be a part of the EV revolution underway.
As a final note, as I went through the list of people and companies involved in bringing Panasonic to Kansas, I thought it would be interesting to see Rahm EmanuelUS Ambassador to Japan and former Chief of Staff to President Barack Obama said. In this age of extreme political polarization, it’s good to see a deep blue Democrat working hard to help a red state get a giant battery factory. Here is the full list of key support organizations and individuals who have been credited by the Kansas Department of Commerce for the plant’s landing: “The following organizations supported Panasonic Energy’s recruitment to Kansas: Kansas Department of Commerce; Kansas Department of Transportation; Kansas Department of Health and Environment; Kansas Department of Children and Families; the Honorable Rahm Emanuel, US Ambassador to Japan; the US Embassy in Tokyo; Kansas Children’s Cabinet and Trust Fund; City of De Soto; De Soto Economic Development Council; evergy; Sunflower Development Group; KC SmartPort; Johnson County Community College; Kansas City, Kansas Community College; Peaslee technology; University of Kansas; Ewing Marion Kauffman Foundation; and Kansas City Area Development Council.”
Tribute to Kansas. Let’s see how long it will take for them to start digging once Panasonic officially approves the deal.
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