Japan's Panasonic has announced plans to build a mega factory in the US mid-western state of Kansas. It will produce high-capacity lithium-ion batteries for Tesla electric vehicles.

The Japanese electronics giant says it will invest four billion dollars, including state subsidies, to build the plant. The new batteries will significantly increase the range of EVs.

Tesla is currently building a factory in Texas, which is close to Kansas. Panasonic hopes to accelerate the supply of batteries to Tesla.

Panasonic is working to establish cost-saving methods and mass-production technologies at its plant in Wakayama, western Japan, before making final investment decisions.