Panasonic’s De Soto plant shifting gears, adding data center energy storage alongside EV battery work

Panasonic announced plans to repurpose production lines at its plant in De Soto, Kansas, to manufacture energy storage systems for data centers, in addition to its ongoing electric vehicle (EV) battery production. This strategic shift is part of a $2.18 billion global investment and is expected to yield the first data center battery cells by mid-to-late 2028 or early 2029. A Panasonic spokesperson confirmed the company is in the initial planning stages for this new production in Kansas.

The decision to pivot towards data center energy solutions comes as federal consumer tax credits for EVs have changed and EV sales have seen a decline. Panasonic's move reflects a broader industry trend, with companies like General Motors also expanding into data center power. The De Soto plant, which opened in July, currently operates at half capacity, with plans for full operation of eight production lines upon completion.

The initiative is also influenced by Kansas's supportive legislative environment for data centers. Last year, the Kansas Legislature passed Senate Bill 98, which provides a 20-year sales and use tax exemption for data centers investing at least $250 million and creating 20 jobs within five years. This incentive allows companies to save millions on construction materials. De Soto has already attracted interest from two data center projects, with one proposed adjacent to the Panasonic facility, further highlighting the region's growing appeal for the data center industry.