As automakers expand their electric vehicle production, investments in battery technologies are evolving at an unprecedented pace. Now, two major industry leaders have announced plans to open EV battery factories dedicated to scaling automotive cell production in the United States.
The economy or the climate? Why not both?
Subscribe for ideas that support the environment and the people.
On July 14, battery supplier Panasonic debuted its new EV battery plant in De Soto, Kansas, part of the Greater Kansas City metropolitan area. The plant has already begun mass production of cylindrical lithium-ion (Li-ion) 2170 cells for electric vehicles, with plans to reach an annual production capacity of 32 gigawatt hours (GWh) once fully operational. Spanning roughly 300 acres, the new battery facility is one of the largest EV battery factories in the continent.
Kazuo Tadanobu, CEO of Panasonic Energy, said in a press release: “The opening of our Kansas Factory marks a major milestone in our journey to scale advanced battery production in the United States. 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.”
Although Panasonic Energy itself is not a vehicle manufacturer, its crucial role in the EV market as a battery supplier is helping drive major advancements by enabling automakers to meet their sustainability goals through improved energy density, productivity, and domestic capacity.
Panasonic’s state-of-the-art Li-ion cells feature a volumetric energy density of 800 watt-hours per liter (Wh/L), at the upper end of the current commercial range of 600-750 Wh/L. This means they can store more energy in the same space, translating into a longer driving range for EVs, and therefore, more vehicle efficiency and sustainability. Additionally, the Kansas Factory is expected to achieve a 20 percent increase in productivity relative to its second EV battery production site, the Nevada Factory, due to the implementation of labor-saving production lines. Panasonic says that other advanced materials will boost cell capacity by around five percent in the near future. By ramping up domestic production, Panasonic is also ensuring that America stays competitive in the EV battery market and reduces its reliance on foreign suppliers. Sourcing materials domestically also lowers greenhouse gas emissions by lowering the need for long-distance shipping and other related processes.
Meanwhile, in Michigan, automaker Ford is opening its own EV battery plant.
Although not yet open, a lithium iron phosphate (LFP) electric vehicle battery plant is currently in the works for 2026. Similar to Panasonic Energy’s Li-ion battery factory in Kansas, Ford’s BlueOval Battery Park, in Marshall, Michigan will also produce Li-ion batteries. However, Ford is specifically focusing on LFP or prismatic cells, a subtype within the lithium-ion battery family. Prismatic cells are recognized for their high energy capacity and specialized design.
BlueOval Battery Park aims to produce around 20 GWh of LFP batteries annually beginning in 2026. The batteries will be used to power Ford’s future EV models.
“BlueOval Battery Park, Michigan, will play an important role in our plan to help make electric vehicles more accessible and affordable by producing low-cost LFP batteries in the U.S. and not relying on imports,” Lisa Drake, Ford’s vice president of electric vehicle programs and energy supply chain, said in an announcement. “We continue to make great progress establishing America’s first automaker-backed LFP battery plant right here in Michigan.”
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.