This year has been a rough one for electric cars, mostly with the federal tax credit going away soon, but the announcement of two major battery plants from Panasonic and General Motors are bright spots that bode well for the future of the industry.

Panasonic, a major Tesla supplier, opened one of the largest plants in the US this week. The Kansas site spans over 225 football fields and will focus on mass producing high-range 2170 cells. (The name "2170" refers to the battery's dimensions.) These are the cells in the high-tech Lucid Gravity, a 7-seat electric SUV with up to a 450-mile range.

Boosting domestic production of high-capacity cells could increase supply and, in turn, lower prices for automakers, who largely source these types of batteries abroad today. China dominates the global battery supply, and its trade tensions with the US put the EV industry on shaky ground.

Panasonic's plant does not specifically target low-cost battery production, but a new plant from General Motors (GM) does. The Detroit automaker is expanding its Tennessee plant to mass produce lithium iron phosphate (LFP) battery cells. These packs tend to have a lower energy density than nickel cobalt manganese (NCM) cells, though their attractive cost could boost EV adoption and suffice for many shoppers. Tesla, Rivian, Ford, and others currently offer LFP cells in several models, especially the entry-level trims.

"This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the US, complementing our high-nickel and future lithium manganese rich solutions and further diversifying our growing EV portfolio," says Kurt Kelty, VP of batteries at GM.

It's possible these batteries will power the revamped Chevrolet Bolt, which GM agreed to re-launch with an LFP battery in the future. They could also power a wide range of low-cost models. GM's Ultium battery platform is universal and can fit in a variety of vehicle types and sizes.

While these plants from Panasonic and GM won't solve the entire EV affordability crisis in the US, they are a step in the right directionc—creating jobs along the way. These plants will take a few years to become fully operational, so expect a delayed pay-off. In the meantime, they prove automakers are still committed to developing electric cars despite recent political headwinds.

By: DocMemory
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