The plant will manufacture lithium-ion batteries for Tesla and other automakers.
“With the increasing electrification of the automotive market, it is necessary to expand battery production in the United States in order to meet demand,” said Panasonic Energy’s CEO Kazuo Tadanobu in a statement.
The new factory is expected to create 4,000 new jobs and will be the second car battery factory for Panasonic in the USA. The company already has a factory in the state of Nevada.
The news comes as Tesla struggles to boost its car production. Earlier this year, the electric car manufacturer announced that it is opening two new factories, one in Germany and one in Texas.