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

It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 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