One of the largest economic development projects in Kansas history will start churning out lithium-ion batteries as soon as March, Panasonic announced on Friday.
Executives from the Japanese tech giant gave updates on its 300-acre manufacturing facility in De Soto, alongside a suite of lawmakers who helped bring the project to Kansas.
Construction on the plant began in late 2022. Soon, Democratic Gov. Laura Kelly said, the plant will start producing more than 60 batteries per second for use in electric vehicles.
The facility “represents Kansas’ commitment to clean energy innovation and reinforces our position as a leader in the global transition to renewable energy solutions,” she said.
Before the first battery has left the facility, the project will have left an unmissable impact on the city of De Soto, political leaders said. The project has brought 3,800 construction workers to the area — a temporary workforce more than half the size of the city itself — with new roads, businesses and infrastructure to accommodate them.
Project leaders said they expect to have 1,000 on-site employees by the summer, and 2,000 by 2026.
De Soto Mayor Rick Walker said the dramatic changes will be a net positive in the long term.
“As we look a few years down the road and the spinoff benefits from the economic activity from 4,000 new workers in the area, those revenues are going to far exceed what is lost in the economic incentive that’s given initially,” he said.
Kansas’ bid to attract Panasonic’s investment in the state saw the creation of a funding mechanism called Attracting Powerful Economic Expansion, or APEX. The state offered over $800 million in tax incentives, with the hope that those funds would be made up multiple times over by the revenues, infrastructure improvements and commercial activity following Panasonic into the state.
Walker said the rise in sales tax revenues from the boost in local commerce has allowed the city to reduce its property mill levy by 30%. He also said the plant has enabled the city to update and expand needed infrastructure, including a water treatment facility, a sewer system and a fire station.
In an interview a few weeks before Friday’s event, Republican state Sen. Mike Thompson said he’s skeptical that the upfront investment in the Panasonic plant will pay off.
“The demand for electric cars is not there,” said Thompson, whose district covers parts of Johnson County. “Is that going to be even viable in five or 10 years?”
Democratic Lt. Gov. David Toland, who also serves as the state’s secretary of commerce, was a top proponent for bringing the project to Kansas through the APEX incentive program. He said the project puts Kansas at the forefront of a burgeoning clean-energy industry.
Republican leaders joined in Friday’s visit to the plant. House Speaker Dan Hawkins and Senate President Ty Masterson hailed the project as a bipartisan accomplishment in polarized times.
“We had a supermajority Republican Legislature, a Democrat administration, but when it comes to this, we find friendship and partnership,” Masterson said.
The Senate president said he hopes the prospect of economic growth and innovation will help counteract the state’s population decline.
“We don’t have mountains and beaches, but we have a wonderful place to raise a family,” Masterson said.
Zane Irwin reports on politics, campaigns and elections for the Kansas News Service. You can email him at zaneirwin@kcur.org.
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