Panasonic is not yet committed to Tesla Gigafactory

Article by Christian A., on March 31, 2014

Panasonic Corp. has yet to commit to investing in the "Gigafactory" battery project in the United States as proposed by Tesla Motor Inc.’s Elon Musk since it would raise investment risks, according to Panasonic President Kazuhiro Tsuga. Panasonic is Tesla’s 's primary supplier of lithium ion cells for its electric Model S sedans.

Tesla disclosed plans for the Gigafactory in February and is reviewing possible locations sites in four southwestern US states. According to Tesla, the battery plant may need up to $5 billion to build and employ about 6,500 people by 2020. Musk has remarked that Panasonic may be involved in the factory, but said the battery maker’s participation is "not 100 percent confirmed."

Craig Irwin, an analyst for Wedbush Securities Inc., wrote in a note this week that having Panasonic as a joint venture partner would facilitate Tesla’s strategic access to the Japanese company’s supply chain, and reduce risks. Texas, Arizona, New Mexico and Nevada -- the four states that Tesla identified as potential locations -- have commenced lobbying efforts to secure the site.

Tesla has already raised around $2 billion in a convertible bond sale to help finance the construction of the the plant and for product development. According to Musk, the Gigafactory is critical to decreasing battery costs and to expand lithium ion cell supplies to allow Tesla to sell hundreds of thousands of EVs annually.

Tesla is also sekking to produce batteries for home storage of electricity generated by solar panels. Menahem Anderman, president of Total Battery Consulting Inc. that if Panasonic isn't involved, the factory will be more of a challenge for Tesla.

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 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