Panasonic Energy Decision: Oklahoma Omitted as Potential Site for New EV Battery Plant
On Wednesday, Panasonic Energy, a segment of Panasonic Holdings, revealed the exclusion of Oklahoma as a potential location for a new electric vehicle (EV) battery plant in the United States. This decision, impacting the battery supplier for Tesla, follows their April announcement of considering the establishment of a plant in Oklahoma, marking it as their potential third facility in the country.
A Shift in Preference: Kansas Chosen Over Oklahoma
In contrast to Oklahoma, Panasonic selected Kansas as the location for its second U.S. plant last year. This preference was influenced by the successful advocacy of Kansas Governor Laura Kelly, securing approval from the state legislature for an incentive package of up to $1 billion. In a formal statement, Panasonic Energy declared, “After meticulous considerations, we have opted not to advance with the development of the site.” Importantly, the decision solely pertains to the potential Oklahoma facility and does not cast any influence on Panasonic Energy’s existing operations in Nevada or Kansas.
In response to inquiries about the decision’s correlation with a potential slowdown in EV demand, Panasonic affirmed its ongoing commitment to exploring opportunities for expanding its North American business. The Oklahoma Department of Commerce clarified that, while specific discussions with Panasonic were not underway, they remain receptive to potential future collaborations.
Industry Challenges: EV Market Dynamics and Tesla Response
The unfolding developments at Panasonic intersect with challenges in the electric vehicle market, where heightened interest rates are putting pressure on demand. In response, Tesla, a significant client for Panasonic, has initiated a price competition strategy to invigorate sales. In October, Panasonic reported production setbacks in Japan due to a sluggish uptake of high-end EVs in North America. Notably, buyers in this market segment are ineligible for tax credits under the Inflation Reduction Act.
Following this announcement, shares of Panasonic Holdings on the Tokyo Stock Exchange concluded Wednesday’s trading session with a 1.5% increase.
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