Tesla's Battery Partner Panasonic Reportedly Scraps Oklahoma Plant - Eyeing Bigger US Investments?

Panasonic Holdings Corporation PCRFF PCRFY has reportedly withdrawn from plans to establish a new electric vehicle battery plant in Oklahoma in the U.S.

After announcing in April its consideration of constructing a plant in Oklahoma, the battery provider for EV manufacturer Tesla, Inc. TSLA has decided not to proceed with this plan for its third facility, according to a news report by Reuters.

"After careful deliberations, we have made the decision not to move forward with developing the site," Panasonic Energy said in a statement, which Reuters notes.

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"This decision will not impact our operations in Nevada or Kansas," according to the statement.

The company also declared it has made "a long-term commitment to investing in and advancing the EV industry in the U.S." to deliver the highest-quality batteries, the report added.

The latest development follows a positive development on December 13, when the company inked a pact to purchase next-generation nano-composite silicon anode material for EV lithium-ion batteries from Sila Nanotechnologies Inc. 

Panasonic Energy will procure the necessary silicon material from Sila's manufacturing facility in Washington State, U.S.

With a strategic focus on North America, Panasonic Energy is working to strengthen local supply chains in order to expand battery production there. 

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Price Action: PCRFF shares closed lower by 0.93% to $9.56 on Tuesday.

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