Tesla and Panasonic collaborating on battery factory

gigafactory-2

Tesla Motors and Panasonic have announced that they will be joining forces to build a large-scale battery manufacturing facility in the United States. To be known as a Gigafactory, the plant will enable Tesla to continuously reduce the cost of long-range battery packs and manufacture them in a volume that will allow the company to meet its vision of advancing mass market electric vehicles.

As a principal partner, Panasonic will utilise half of the manufacturing space to build lithium-ion cells and will invest in the equipment, machinery and other manufacturing tools required based on mutual approval. Tesla will then take these cells and assemble battery modules and packs, which, along with key suppliers producing the required precursor materials, will occupy the other half of the facility.

The carmaker will also prepare, provide and manage the land, buildings and utilities at the site, with Reno, Nevada reportedly being the company’s first choice as a location. Both Tesla and Panasonic will continue deliberations on the implementation of the joint venture, including sales, operations and investment.

Tesla-gigafactory-locations

The plant will be producing battery packs for Tesla’s upcoming entry-level model, the Model 3. To meet the expected demand, the company will continue to purchase battery cells from Panasonic’s factories in Japan.

Optimised manufacturing processes driven by economies of scale previously impossible to achieve of will help lower costs. Furthermore, the plant will manufacture cells designed specifically for electric vehicles both in size and function, co-locate suppliers on-site to eliminate packaging, transportation and duty costs and be built at a location with lower utility and operating expenses, all of which will save yet more money.

The Gigafactory will produce cells, modules and packs for Tesla’s electric vehicles – including its upcoming entry-level model, the Model 3 – and for the stationary storage market. It is planned to produce 35GWh of cells and 50GWh of packs annually by 2020, and is projected to employ about 6,500 people by 2020.

gigafactory_timeline

“The Gigafactory represents a fundamental change in the way large-scale battery production can be realised,” said Tesla’s chief technical officer and co-founder JB Straubel. “Not only does the Gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications.”

“We have already engaged in various collaborative projects with Tesla toward the popularization of electric vehicles,” added Panasonic’s executive vice president Yoshihiko Yamada. “I believe that once we are able to manufacture lithium-ion battery cells at the Gigafactory, we will be able to accelerate the expansion of the electric vehicle market.”

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • I’m just curious, how much rare earth content are there in a pack of long range battery in Tesla car?

    Just trying to see how EV vehicles harm/benefit the environment..

    Like or Dislike: Thumb up 2 Thumb down 2
  • seancorr on Aug 01, 2014 at 7:55 pm

    I think I will need to wait for a very long time before I can purchase a Tesla vehicle here.

    I’ve had a chance to see one up close and sat in it while I was in Tokyo and was impressed with both the exterior and interior. The large LCD in the center console is a sight to behold and the way the door handles hide itself is cool.

    Like or Dislike: Thumb up 2 Thumb down 0
    • DrCooper on Aug 03, 2014 at 3:08 pm

      You can ask grey importer to get the car from Japan or Hong Kong with RHD. It gonna cost a bomb of course…Last time they did have branch in Singapore but stop operation couple years ago due internal bureaucracy or something and can’t sell it cheap.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Aug 01, 2014 at 8:55 pm

    luckily not samsung otherwise will end up like my note 3 hari hari lag

    Like or Dislike: Thumb up 6 Thumb down 2
  • eel on mask on Aug 01, 2014 at 9:13 pm

    I wish our NAP would be able to attract investment from this type of cutting edge EEV manufacturer rather than the “so-so” type of vehicle manufacturers

    Like or Dislike: Thumb up 4 Thumb down 0
  • pondan on Aug 02, 2014 at 1:25 am

    looking that the car volume, it’s something that Proton can only dream.

    A less than 10 years old private and niche car manufacturing is beating a gov backed Proton with 30 years of crap.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Kangkung Cicat on Dec 08, 2014 at 9:58 am

    THis is good example for Potong.
    What Potong gets, Tesla non.
    What Tesla Achive, Potong never,

    Tesla, not protected, no gov fund.
    Tesla, own factory, own tech, even open source.
    Potong, losing money, get from EPF, Gov, Tax payer.
    Potong, cronism supply chain, board of directors.

    All petrol head, open your eyes, Potong ruin our safety, money, and our country future.
    It’s not only Potong your Kuku only,
    but also everything!

    Like or Dislike: Thumb up 0 Thumb down 1
 

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