Home » US business news » Panasonic ditches Oklahoma electric vehicle plant plan
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Panasonic has dropped its plans to construct a high-value electric vehicle (EV) battery factory in Oklahoma.
Panasonic is currently building an EV battery facility in Kansas and had considered Oklahoma as a possible extra site.
The company also runs a joint-venture EV battery plant with Tesla in Nevada.
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In April, Panasonic formally agreed to assess the feasibility of a factory in Oklahoma.
However, on Wednesday, the company revealed its decision to not proceed with this project, citing "a wide range of factors" but not specifying any.
Sources involved in the discussions with Oklahoma mentioned discrepancies regarding site conditions and potential subsidies.
The office of Oklahoma's Governor Kevin Stitt expressed that the state had endeavored to finalize a deal with Panasonic "when market conditions were stronger, but hopefully we can find another opportunity to partner with them in the future."
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Panasonic has faced elevated expenses at its Kansas construction site, according to insiders at the company.
With the Inflation Reduction Act from the Biden administration, the US is rapidly developing plants for batteries, semiconductors, and other key products, leading to increased costs for construction and factory equipment.
The higher-than-expected costs in Kansas have posed challenges for Panasonic in committing to a new similar project, as per company insiders.
A Panasonic spokesperson did not comment on the Kansas site's costs.
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She affirmed that the company's goal to develop 200 gigawatt-hours of battery capacity by early 2031 remains unchanged.
The US EV sector is encountering uncertainties with slower-than-anticipated demand growth.
Consequently, some companies, including General Motors, are moderating their expansion efforts.
GM has delayed the inauguration of a major electric-pickup-truck factory in Michigan.
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