Gigafactory: Tesla to invest $2 billion into a US car battery plant

Article by Anita Panait, on February 28, 2014

Tesla Motors Inc. is intending to invest $2 billion into a car battery site in the United States that could supply lithium ion packs for 500,000 vehicles annually by the end of the decade. The site -- expected to commence operations in 2017 -- is part of Tesla's blueprint for a more affordable electric vehicle. It would also be the first major, integrated US site that builds battery cells for electric cars.

Tesla said in a blog that it has already narrowed the list of sites for the facility to locations in Nevada, Arizona, New Mexico and Texas, adding that "final site selection activities are underway." Tesla and partners are expected to spend between $4 billion and $5 billion into the site through 2020. The site will enable Tesla "to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead," according to the carmaker.

By end of the decade, the plant is expected to build more lithium ion batteries annually than were produced globally in 2013. "By the end of the first year of volume production of our mass market vehicle, we expect the Gigafactory will have driven down the per kWh cost of our battery pack by more than 30 percent," Tesla disclosed.

The company expects the site to have around 6,500 employees. Panasonic Corp., is mulling investing in the site, sources privy with the plan told Reuters. Last week, Tesla initially hinted about plans for the lithium ion battery plant that would likely have Panasonic and other suppliers as partners. Panasonic is aiming to expand its cooperation with Tesla.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries