Panasonic to Build Power Battery Factory in Oklahoma

Tesla's battery supplier, Japan's Panasonic Holdings, said on April 16 that the company is considering building a new battery plant in Oklahoma, which would be the company's third factory in the US, according to foreign media reports.

Panasonic told the media in an email that it has reached an agreement with the State of Oklahoma to determine the eligibility and terms of the incentives under the Oklahoma LEAD Act. The company was referring to Oklahoma's incentive program to attract large companies to build plants at its MidAmerica Industrial Park in Pryor. The company has made no other specific decisions, but it will share more information as it becomes available.

Foreign media reported earlier that Panasonic was considering building a plant in Oklahoma, and that the Japanese conglomerate was being approached by other electric car makers, in addition to longtime customer Tesla, to become a battery supplier to those car companies amid a surge in electric vehicle sales. Earlier this month, foreign media said that Panasonic was also in talks with Stellantis and BMW about building a new electric car plant in North America.

Last July, Panasonic had rejected Oklahoma when choosing a site for its second US power battery plant and eventually decided to build the factory in Kansas to produce power batteries for Tesla. Oklahoma said that if Panasonic builds a plant in the state, the new plant will be a $4 billion investment and will create up to 4,000 jobs.