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

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 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