Panasonic Holdings, a battery supplier to Tesla, is considering building a new battery plant in Oklahoma, which will make it the company's third facility in the United States, according to a report by Reuters.
The company is in the early stages of the planning process and is looking into the state's incentive package established to draw major corporations to its MidAmerica Industrial Park in Pryor, according to a statement by Panasonic.
The logo of Japan's Panasonic Corp. is displayed in the window of their building in Tokyo on November 1, 2016.
Oklahoma's LEAD Act
"Panasonic has entered into an agreement with the State of Oklahoma that defines the eligibility and terms of the incentives under Oklahoma's LEAD Act," the company said in a statement with Reuters.
The statement added that no specific decisions had been made and that the company would share more information as it became available.
LEAD Act is an incentive package established by the state to attract major companies to its MidAmerica Industrial Park in Pryor.
The act provides eligible companies with tax exemptions, tax credits, and other incentives to encourage them to invest in Oklahoma and create jobs in the state.
This news comes at a time when electric vehicles are rising in popularity, with other car manufacturers, including Stellantis and BMW, looking to Panasonic as a possible battery supplier.
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New EV Plant in North America
The Wall Street Journal reported earlier this month that the Japanese conglomerate is currently in discussions with these automakers about developing a new EV plant in North America.
Although Panasonic is primarily known for supplying batteries to Tesla, the electric vehicle maker, it is expanding its reach into the EV market by considering partnerships with other companies as well.
The decision to look into Oklahoma as a potential site for its new plant comes after the company chose Kansas over Oklahoma for its second EV battery plant in July 2021. The plant in Kansas is expected to create up to 4,000 jobs with an investment of up to $4 billion.
The possible new battery plant in Oklahoma would add to Panasonic's existing facilities in Nevada and New York.
The company has been working with Tesla since 2014, with the two companies partnering to build the Gigafactory in Nevada, which is responsible for producing batteries for Tesla's electric cars.
The applications for these batteries extend beyond electric vehicles. Panasonic is also exploring the possibility of supplying battery cells for energy storage systems in homes and businesses.
With the demand for renewable energy sources increasing, the need for affordable energy storage solutions is also growing.
Panasonic's potential decision to build a new battery plant in Oklahoma highlights the company's growing role in the EV and energy storage markets.
As electric vehicles become more popular, the demand for batteries will increase, and companies like Panasonic will need to expand their production capabilities to meet the needs of the market as well.
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