Panasonic is delaying the start of battery production at its new factory in Kansas. This delay is due to lower than expected demand from Tesla, its main customer.
Panasonic had planned to begin full production at the Kansas factory by March 2027. This was part of a plan to become a major battery supplier for electric vehicles. They had previously partnered with Tesla on a battery factory in Nevada. While they have gained some other customers, Tesla still buys the most battery cells from Panasonic, and the new Kansas plant was expected to supply Tesla with the majority of those cells.
However, Panasonic has decided to postpone the full production start date. Nikkei news reports that Panasonic is now aiming for full production by the end of 2027 instead of March 2027.
Production is expected to begin soon, with an opening ceremony scheduled for next week. The goal was to produce 30 gigawatt-hours (GWh) of 2170 battery cells, which is Tesla’s standard battery size. But now, it’s unclear when Panasonic will reach that production level due to a possible drop in demand for electric vehicles in the US. This is partly because the federal tax credit for electric vehicles will end in the fourth quarter of 2025.
## Electrek’s Take
Panasonic has been successful in supplying Tesla. They were among the first battery makers to work with Tesla, which helped the company become a leading EV battery producer.
However, this partnership is now facing challenges because Tesla’s demand has decreased.
While the US market is still strong for Tesla, sales in Europe and China are down. It’s expected that sales in the US will continue to decline after the tax credit ends.
This could hurt Tesla, and Panasonic will need to find other customers for its batteries made in Kansas.
I’m Rohan Mehta, the voice behind KhelRe—a trusted and steadily growing blog dedicated to electric vehicles (EVs) in India. With over five years of experience as a tech and automotive blogger, I turned my frustrations with owning an EV into a mission: to help others make more intelligent choices in this fast-evolving world of electric mobility.
I’ve been an early adopter of EV technology—I repurchased my first electric scooter in 2019. That experience opened my eyes to both the promises and the pitfalls of this new mode of transport. From slow charging times and range anxiety to misleading specs and hidden costs, I’ve faced it all. But instead of walking away, I decided to write about it.
That’s how KhelRe was born—a no-nonsense, hands-on blog where I share practical, real-world reviews of EV cars, bikes, and scooters. I break down features, range, performance, and pricing from a user-first perspective. I take pride in simplifying complex tech into clear, valuable insights—offering tips, ownership stories, and advice you won’t find in flashy press releases or sales brochures.
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When I’m not test-driving the latest e-scooter or comparing charging networks, you’ll probably find me tinkering with my garage EV setup, chatting with fellow enthusiasts online, or sipping chai while writing my next blog post from a cosy local café.
