Japanese electronics and battery giant Panasonic has announced a delay in its plan to ramp up its $4 billion EV battery plant in De Soto, Kansas, with full capacity now postponed beyond its target of March 2027—citing weakening demand from its largest customer, Tesla.
The plant, which aims to produce 30 gigawatt-hours annually of high‑energy 4680 battery cells, was initially planned to reach full production by March 2027. However, Panasonic has not yet set a revised timeline.
Much of the delay is being blamed on sluggish EV sales at Tesla. The automaker has faced declining demand, partly tied to an aging model lineup, reduced EV tax incentives, and broader consumer headwinds.
Industry analysts view this setback as a warning sign for the North American EV supply chain. The Kansas plant is Panasonic’s second major facility in the U.S., following its Nevada plant, and its progress has been impacted by tariff uncertainty, volatile EV tax policies, and the gradual uptake of domestic battery production.
Panasonic CEO Yuki Kusumi has defended the delay, noting the impact of slower EV demand and ongoing policy uncertainties. Nevertheless, Panasonic continues to press ahead, having also recently inaugurated a new plant in Wakayama, Japan, while planning to deliver batteries for Tesla and other automakers.
As Tesla pushes for more U.S.-made battery supply to meet tax-credit requirements, Panasonic is under increasing pressure to speed up the Kansas ramp-up. But until EV sales recover and policies stabilise, the timeline remains uncertain.
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