Panasonic Energy is considering a larger investment in Kansas

Although the EV market is slowing down, Panasonic Energy is considering making more investments in the US state of Kansas.

According to sources, one of whom has firsthand knowledge of the situation, the Japanese manufacturer of batteries for electric vehicles is considering expanding its De Soto plant's production capacity.

Phase 3 is the internal term for the plan, which calls for adding more production lines to the midwestern state. According to one source, the plan's scale is comparable to that of the De Soto facility, which the business is now building at a cost of about $4 billion. The company's principal client, Tesla, which operates a facility in Nevada with Panasonic, is probably the primary buyer for the extra batteries.

The concept is still in its early stages, according to a source with intimate knowledge of it, and "no final decision has been made." Before a judgment is made, "multiple factors" will be taken into account, the individual said.

According to sources, Panasonic planned to use the extra capacity to produce the state-of-the-art 4680 batteries, which are cylindrical lithium-ion batteries with five times the energy capacity of standard 2170 batteries. Higher capacity often translates into fewer batteries being used in each car, which speeds up production. Although 4680 batteries are being developed by companies such as Tesla and LG Energy Solution in South Korea, the Japanese manufacturer maintains its leadership position in terms of safety and technology.