Panasonic Pushes Back EV Battery Plant Expansion in U.S.
Panasonic’s electric vehicle battery plans in the U.S. are hitting the brakes—and Tesla’s faltering sales may be to blame. Originally aiming to hit full production by March 2027 at its $4 billion EV battery facility in Kansas, Panasonic has decided to delay the timeline, according to a report from Nikkei Asia.
The Japanese tech giant hasn’t set a new target date yet. The Kansas plant, designed to deliver 30 gigawatt-hours of battery capacity annually, marks Panasonic’s second large-scale battery factory in the U.S. after its Nevada gigafactory. Mass production at the Kansas site is still set to begin soon, but the scaling pace will be slower than planned.
Tesla Troubles Trigger Strategic Shift
Tesla, Panasonic’s biggest EV battery customer, has been struggling with headwinds that are reshaping the entire electric vehicle sector. From the expiration of U.S. EV tax credits to growing concerns over the company’s ageing lineup, sales have notably slowed.
Further complicating matters, Tesla CEO Elon Musk’s high-profile feud with President Donald Trump has drawn attention and added uncertainty to Tesla’s political standing. The mix of political drama, policy shifts, and market fatigue has softened demand for Tesla vehicles—especially in North America.
As a result, Panasonic appears to be adjusting its production strategy to align with real-time demand rather than initial projections made during the EV boom.
Industry-Wide Reassessment in a Cooling Market
This move reflects a broader reassessment sweeping through the EV industry. Once considered the future of automotive growth, EV demand is now facing a reality check. Inflation, high interest rates, and rising competition from Chinese EV brands have pressured manufacturers to rethink timelines and investment strategies.
Panasonic’s Kansas plant was expected to play a key role in boosting U.S.-based battery output, a priority under recent American manufacturing policies. However, as demand wavers and major clients like Tesla scale back, suppliers are making cautionary adjustments.
What’s Next for Panasonic’s U.S. Battery Strategy?
While Panasonic hasn’t issued an official comment on the delay, it’s likely that the company will take a wait-and-watch approach before committing to full-scale production. The facility is still operational and preparing for its initial production phase—but further ramp-up may now depend on whether Tesla rebounds or whether Panasonic secures new major buyers in the U.S. market.
With electric mobility still a central focus of both U.S. and global climate goals, long-term demand for EV batteries remains strong. But in the short term, suppliers like Panasonic are adapting to a market that’s no longer growing at breakneck speed.
Stay tuned to Maple News Wire for more insights on EV market trends and tech manufacturing shifts.
