Not a ribbon was in sight at Panasonic’s De Soto plant, but an event there last Friday — complete with speeches by visiting elected officials — gave ribbon-cutting energy just the same.
With the first production of lithium batteries for electric vehicles expected in only a couple of months, federal, state and local officials on hand were in a celebratory mood. Some reminisced about the excitement of negotiating the tax incentives. Others looked forward to the economic boon and thousands of jobs the project is expected to create.
De Soto Mayor Rick Walker remembered the “heavy sense of uncertainty” that overshadowed the site when the former Sunflower Army Ammunition plant stopped production and compared it to today.
“This moment is about more than this new plant,” he said. “It’s about resilience. It’s about transformation and it’s about the future that we’re building here together. Welcome to the next chapter of De Soto. The lights are shining again and the future is bright.”
First production could come as soon as March
The plant is nearing a major milestone this spring with activation of the first production line in its first wing.
First production has been anticipated as early as late March. Alan Swan, president of Panasonic North America, said after the event that construction is on schedule but would not commit to a more precise date.
He also said he doesn’t expect the prospect of losing the $7,500 tax credit for purchasing a new electric vehicle to alter the company’s production plans. (On Monday, soon after being sworn in, President Trump signed an executive order that, among other things, attempts to thwart EV tax credits pushed by the Biden administration. Legal experts expect the move to be challenged in court, according to the New York Times.)
Still, Swan said the demand for electric vehicles is continuing to grow, incentive or no incentive, and that “customers are lined up.”
Meanwhile, the jobs are expected to roll in. Panasonic has hired 400 already and has immediate openings for 400 more, according to Kristen Walters, vice president of human resources for Panasonic North America.
The plant will bring a workforce of 4,000
By this summer, the company expects to have 1,000 employees. The workforce needed to build the plant has already peaked at 3,800, Swan said.
When completed, the plant is expected to have a workforce of 4,000.
Gov. Laura Kelly attended last Friday’s event and listed a wider economic impact, including transportation improvements, a new substation for utility Evergy, plus a fire station and sanitary sewer expansion for the De Soto area.
The project is expected to bring in more than $500 million in yearly labor income to the Kansas workforce, she said, adding that at full production, the plant will manufacture 66 batteries per second — enough to power 500,000 electric vehicles a year.
“When finished, this facility will put Kansas at the forefront of sustainable energy and advanced manufacturing,” she said.
Walker also noted that De Soto councilmembers recently reduced its municipal property tax rate by about 30% due to the economic ripple effect of the plant.
The event was billed as the first indoor visit to the company, located in Astra Enterprise Park. But attendees were confined to a meeting space and a bit of hall just inside the doors of the north side. There were no tours of equipment or work areas.
It was attended by a bipartisan group of lawmakers and officials, including County Commission Chair Mike Kelly and U.S. Rep. Sharice Davids. Davids and other speakers also credited U.S. Sen. Jerry Moran, who was unable to attend.
‘A paradigm shift in how Kansans see Kansas’
Kansas Senate President Ty Masterson, House Speaker Dan Hawkins and Lt. Gov. David Toland noted the progress the plant has made since groundbreaking in 2022 and shared stories of surviving the battle to get lawmakers to agree to $830 million in tax incentives without telling them who it was for.
Toland said the De Soto location won over 81 others and noted the five-million-square-foot plant will be the largest of its kind in the world.
Getting the mega-incentive deal through the legislature wasn’t easy, he said. Supporters were tasked with passing the largest tax incentive plan in state history, “and you can’t tell anyone in the caucus who the company is and you’ve got to do it in 13 days, oh, and it’s an election year,” he said. “And we got it done.”
Toland said the project proves Kansans can do big things.
“What this facility represents is a paradigm shift in how Kansans see Kansas,” he said. “This is a source of pride, not just for all of us in this room but now for Kansas, all of us, our state. This is something we can point to that is a unique accomplishment for our state.”
Mike Kelly also touted the road improvements, new fire station and future improvements the project may bring to rural Johnson County.
Keep reading: Panasonic to build $4 billion Tesla battery plant in Johnson County, creating 4,000 jobs
