Panasonic Energy, a Panasonic Group company, has announced the opening of its new cylindrical lithium-ion (Li-ion) battery factory for electric vehicles (EV) in De Soto, in the U.S. state of Kansas.

The company has also begun mass-producing its 2170 battery cells at the Kansas plant. It aims to achieve an annual production capacity of approximately 32 GWh. The factory is built on roughly 300 acres of land.

Panasonic Energy aims to utilize the Kansas facility to increase its U.S.-based production capacity to approximately 73 GWh. The new facility will also help meet the demand from automotive consumers who are increasing their EV production.

The company also has a production facility in Sparks, Nevada, with a production capacity of roughly 41 GWh. The Nevada factory has been operational since 2017 and has delivered over 11 billion cells to date.

Panasonic Energy said it aims to build on this experience to advance its manufacturing capabilities and achieve stable mass production at the Kansas facility at an early stage.

Utilizing its production lines, the Kansas factory is expected to achieve approximately 20% higher productivity compared to the Nevada facility. The company aims to introduce products using advance materials to improve cell capacity by roughly 5%.

Panasonic Energy stated that it is collaborating with institutions such as the University of Kansas to foster long-term partnerships between industry and academia, centered on technological advancements and specialized talent development.

The company produces Li-ion cells with a volumetric energy density of 800 Wh/L, with about 19 billion cells supplied as of March this year. It claims the cells have powered approximately 3.7 million EVs.

In April this year, Panasonic’s North American division announced it would be discontinuing its solar and battery storage business.

Last year, Panasonic participated in Battery Smart’s $65 million fundraising round in a Series B. LeapFrog Investments led this round. Other investors included MUFG Bank, Ecosystem Integrity Fund, Blume Ventures, and British International Investment.