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Panasonic showcased its automobile solutions, including models of its signature cylindrical EV batteries, at the world's biggest technology trade show, CES, in the U.S. city of Las Vegas earlier this month. (Photo by Tsuyoshi Tamehiro)

Panasonic leads Japan's EV battery comeback plan with U.S. push

Subsidies are driving gigafactory plans. But sagging demand may yet prove skeptics right

DE SOTO, U.S. -- Rick Walker, mayor of De Soto, Kansas, can barely contain his excitement about the vast U-shaped factory going up on his city's outskirts. Overhung with cranes and buzzing with over a thousand workers, the plant is being built by Panasonic Energy, a Japanese maker of batteries for electric vehicles and a major supplier to Tesla.

The 1.2-square-kilometer compound, once occupied by a U.S. Army ammunition plant that closed in 1992, will ultimately be a magnet for the local economy, Walker says. "It was a big source of employment for our community," he recalled. "We had half a dozen gas stations, we had three or four grocery stores, we had several taverns; it was a thriving downtown."

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