Panasonic Energy has axed plans for a new electric vehicle battery plant in the US state of Oklahoma.
The firm, which is a unit of Panasonic Holdings and the battery supplier to EV maker Tesla, said the south-western state was no longer a candidate to be its third US factory.
Last year, the battery maker chose Kansas for its second plant in the United States over Oklahoma, after Kansas Governor Laura Kelly pushed the state legislature to approve an incentive package of up to $1 billion.
“After careful deliberations, we have made the decision not to move forward with developing the site,” Panasonic Energy said in a statement. “This decision will not impact our operations in Nevada or Kansas.”
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The Oklahoma Department of Commerce said although it was not engaged in any specific talks with Panasonic for a site, it would look forward to future opportunities.
When asked whether slowing EV demand impacted the company’s decision, Panasonic said it will continue to consider all possibilities for expanding its North America business.
Demand for electric vehicles have been pressured this year by high interest rates forcing Tesla to spark a price war to stoke sales.
The Tesla supplier said in October that production in Japan suffered from slowing uptake for high-end EVs in North America, whose buyers do not receive a tax credit as part of the Inflation Reduction Act.
- Reuters with additional editing by Sean O’Meara
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