Even as it has faced high demand for batteries from Tesla, Panasonic has been slower to build scale compared with rival suppliers LG Energy Solution of South Korea and China’s Contemporary Amperex Technology Co.
The factory is expected to begin production in 2025, and it will eventually supply electric vehicles and hybrids built in the region.
The $1.3 billion plant will eventually make batteries for as many as 1.2 million hybrid, plug-in hybrid and BEVs per year, the automaker said.
Japan's Envision AESC will invest $2 billion to build a battery-cell and module plant in Kentucky to supply Mercedes-Benz and multiple other automakers.
J.B. Straubel's broader goal is to move a huge chunk of the battery-component industry from Asia to the U.S., Bloomberg reported.