Japan’s Panasonic Energy has picked Kansas as the location of its new US battery gigafactory, securing $829.2 million in state incentives, Kallanish reports.

The $4 billion battery gigafactory is planned to be built in the De Soto site in Kansas City. It’s set to be the largest investment in the state’s history and one of the biggest battery production facilities in the country. The project remains subject to a final investment decision by Panasonic’s board.

The Kansas governor’s office says competition for the project was strong and required a coordinated effort from the state. “Winning this project shows that Kansas has what it takes to compete on a global scale – and that our pro-business climate is driving the technological innovation needed to achieve a more prosperous and sustainable future,” adds Governor Laura Kelly.

Under the so-called APEX incentives granted to Panasonic, each $1 of state incentive will generate $26.06 of private investment. The package is provided on a reimbursement basis after the company made the promised investment and hired workers. The state incentives include $500m in investment tax credit, $234m in payroll rebate, $60.2m in sales tax exemption, and $5m for training and education.

Panasonic Energy ceo Kazuo Tadanobu said in a separate statement that expanding battery production in the US is critical to help meet rising demand.

“Given our leading technology and depth of expertise, we aim to continue driving growth of the lithium-ion battery industry and accelerating towards a net-zero emissions future,” he adds.

The company’s first battery facility in the country, PENA, started production in Nevada five years ago. It has since shipped over 6 billion EV battery cells. The new gigafactory in Kansas is expected to produce the 4680 battery cells designed by Tesla for its next-generation EVs.