On Wednesday Kansas Governor Laura Kelly announced that Panasonic Energy Co., Ltd. plans to build one of the largest electric vehicle (EV) battery manufacturing facilities of its kind in the United States — in De Soto, Kan.
The $4 billion investment represents the largest economic development project in Kansas history and is expected to create up to 4,000 new jobs.
The development will have ripple effects throughout the regional and state economy, supporting an estimated 4,000 additional jobs created by suppliers and community businesses and 16,500 construction jobs as cited in an independent Wichita State University economic impact study.
“Winning this project has shown 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,” said Governor Kelly.
This planned state-of-the-art facility will create and supply lithium-ion batteries and accelerate the future of electric vehicle innovation on a global scale. Panasonic Energy’s current U.S. battery manufacturing operation has shipped more than six billion EV battery cells.
“Panasonic Energy made the right choice to select the Kansas City region due to our market’s strengths in EV and tech innovation,” said Tim Cowden, president and CEO of the Kansas City Area Development Council. “This announcement, alongside FIFA’s selection of KC as 2026 World Cup host city, our new single-terminal airport coming online and global tech companies investing in the market, reinforces the transformational success our region is having on a global scale.”
Panasonic Energy plans to expand its production of EV batteries as the automotive industry shifts to more sustainable electric technologies. The proposed development would boost the regional economy, creating opportunities for suppliers and community businesses.
"With the increased electrification of the automotive market, expanding battery production in the U.S. is critical to help meet demand," said Kazuo Tadanobu, president, CEO of Panasonic Energy. "Given our leading technology and depth of experience, we aim to continue driving growth of the lithium-ion battery industry and accelerating towards a net-zero emissions future.”
Lieutenant Governor and commerce secretary David Toland noted competition for this milestone project was strong and required a coordinated effort from the state. A key component of that undertaking was the enactment of the bipartisan Attracting Powerful Economic Expansion (APEX) Act earlier this year.
“Once Governor Kelly signed APEX into law,” Toland said, “the state gained the necessary economic development tool to pursue mega-projects that could transform the Kansas economy. Panasonic recognized Kansas as not just a contender, but as the ideal partner for this revolutionary project.”
Panasonic Energy selected Kansas due to its business-friendly climate, robust talent pool and workforce skillset, support of technology innovation, strong transportation infrastructure and central location. This builds on Kansas City’s legacy manufacturing and automotive industry strengths.
“With this major development, Kansas is being recognized around the world for our talented workforce, innovative environment and quality of life,” said U.S. Senator Jerry Moran (Kan.). “Panasonic will bring thousands of good-paying, high-quality jobs to our state which will be a massive economic benefit for 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.”
Kansas has an established battery manufacturing sector with seven establishments employing approximately 1,300 individuals. The state was ranked second in the nation for employment and wage concentration in the sector in 2021. With the opportunity to potentially add an additional 4,000 jobs, this deal will make Kansas an industry leader at a time when the sector is predicted to grow at an annualized rate of 2.4 percent.
The proposed Panasonic project is the latest economic development win recently announced by the state:
Last month, Governor Kelly said the state surpassed $9 billion new, private-sector investments since January 2019 resulting in more than 43,500 jobs being created or retained.
Also in June, Kansas was awarded Area Development Magazine’s prestigious Gold Shovel Award for the second year in a row. The back-to-back wins are unprecedented in state history.
In March, Kansas won the Governor’s Cup from Site Selection Magazine for having the country's most economic development investment per capita.
The Kansas City region is the third fastest-growing tech market in the U.S. and is a nucleus of engineering, technology and automotive manufacturing expertise. With a strong talent pipeline and cutting-edge training programs, the Kansas City market employs nearly 21,000 workers who contribute to the $19 billion KC transportation manufacturing industry.
“The electric vehicle industry is expected to grow eight times its size in less than 10 years, which is an incredible opportunity for states, communities and energy partners to support leading, innovative technology companies,” said David Campbell, president and CEO of Evergy. On behalf of our region’s business community, we are very excited to welcome Panasonic Energy to Kansas and the Kansas City Region, and we look forward to supporting your long-term success.”
The following organizations supported the recruitment of Panasonic Energy 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, U.S. Ambassador to Japan; the U.S. Embassy to 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 Tech; University of Kansas; Ewing Marion Kauffman Foundation; and Kansas City Area Development Council.
Feature photo: U.S. Senator Jerry Moran emphasizes how Panasonic Energy’s selection of Kansas showcases the state and region on a world stage. Photo credit: Jason Tracy Photography.