Apple could be interested in Tesla's massive new battery Gigafactory

Justin Kahn

Posts: 752   +6

Electric car company Tesla has announced its plans to build a massive 10-million square foot battery manufacturing facility. The company expects the new Gigafactory to bring the cost of lithium-ion based batteries down due to the large scale of the operation and its expertise in the field. The same tech that goes into making batteries for electric cars like those from Tesla is used in most of the mobile devices we use today. If Tesla manages to produce an operation on the scale its describing, the company could find itself producing batteries for more than just cars.

According to Tesla, by 2020 the Gigafactory could "produce more lithium ion batteries annually than were produced worldwide in 2013." Tesla expects that by the end of the first year of manufacturing, the plant could bring the cost per kWh of its battery packs down by more than 30%.

Recently, Tesla CEO Elon Musk confirmed that he and Apple were in discussions but would not disclose any details. Rumors surfaced that Apple might be in-line to purchase the electric car company, but that the meetings were more likely to do with implementing iOS software directly into Tesla vehicles. However, in light of the Gigafactory announcement, analysts are suggesting the talks could have been surrounding Apple getting in early on what could be a possible future battery supplier for its flagship devices.

Tesla estimates the cost of building the facility at between $4 and $5 billion, of which it's looking to raise around $1.6 billion in debt financing. As we know Apple could easily fork up the entire bill for Tesla, never mind the $1.6 billion in financing. A plant of this nature, on top of Tesla's well known efficiency when it comes to manufacturing, is something that would likely fit in well with the DNA of Apple. Like with many deals of this nature, if Apple were to opt in early on some kind of partnership or investment level, it would potentially give the company very close access to the process, leading to better batteries at a lower cost.

Further details on the facility itself are a little thin still. We do know Tesla plans to conduct as much of the battery manufacturing within the factory itself and that it plans to help power the facility with wind and solar energy set-ups. While we are still far enough away that the company is yet to choose on a final location for the Gigafactory, some can say it is clear that it will likely have to manufacture products outside of just its vehicles, especially if sales projections on what will likely be much more affordable Teslas don't quite hit projections.

Permalink to story.

 
I think apple should go with Tesla to be honest it seems like a match made in heaven! Plus who could argue with a little lower cost of the iphones ;)
 
I think apple should go with Tesla to be honest it seems like a match made in heaven! Plus who could argue with a little lower cost of the iphones ;)
The price of an iphone is not based on what it costs to make, it's based on what people will pay. Cheaper batteries mean higher margins and more profit for Apple, not a lower price... at least not in the US.

This story doesn't have any new facts in it. Last week we heard about Apple talking to Tesla and figured they might buy them. Now it seems as though someone realized that Tesla is making a battery factory, and that Apple uses a lot of batteries and then put two and two together. But there's still no evidence of that.

As we know Apple could easily fork up the entire bill for Tesla, never mind the $1.6 billion in financing.
Tesla doesn't need Apple's help in financing the factory. There are four states in the southwest US where the factory might be placed all competing for it. They will be offering tax rebates and all sorts of incentives. Also, Tesla has recently issued $1.6 billion in convertible bonds to pay for their factory. Their last round of convertible bonds made a ton for it's investors. If Apple hasn't already bought some, there probably aren't any left.
 
Either way its good news... The iphone is also looking more like a good choice of phone simply because I love the UI...
 
Either way its good news... The iphone is also looking more like a good choice of phone simply because I love the UI...
Oh, for sure. I'm not an Apple user, but I'm glad to see technology in the car moving forward. Tech companies seem to do a good job of jumping on the latest band wagon, and that'll mean a few options for us in the future.
 
Oh, for sure. I'm not an Apple user, but I'm glad to see technology in the car moving forward. Tech companies seem to do a good job of jumping on the latest band wagon, and that'll mean a few options for us in the future.

I am pretty much same I have a galaxy phone, imac for web dev and programming and a gaming PC for well gaming and browsing etc. but the new Iphone does seem interesting but I do hope apple do use that $150+bill of cash in improving their devices and services.
 
Tesla will be making Li-Ion 18650 (the fat cylindrical ones similar to AA's) batteries, not anything that will fit in a mobile phone.

This rumour is bullcrap.
 
Tesla will be making Li-Ion 18650 (the fat cylindrical ones similar to AA's) batteries, not anything that will fit in a mobile phone.

This rumour is bullcrap.
Just because Tesla are using the cylindrical type Li-Ion now does not mean they will going forward, If you are making your own you will make them as cheaply as possible which would be flat slabs probably
 
Just because Tesla are using the cylindrical type Li-Ion now does not mean they will going forward, If you are making your own you will make them as cheaply as possible which would be flat slabs probably

apart from the fact Tesla have patented their lithium battery technology for using 18650 batteries, even if they do transition to "flat slabs", that doesn't mean they will be small and thin batteries suitable for mobile phones.

This is what Lithium-based batteries look like for cars:

http://www.greencarreports.com/imag...pack-for-2014-chevrolet-spark-ev-electric-car

http://green.autoblog.com/2009/12/0...nces-location-of-lithium-battery-plant-in-po/

http://www.electric-vehiclenews.com/2010/11/sb-limotive-to-provide-lithium-ion.html

http://www.mnn.com/money/sustainabl.../toyota-to-make-lithium-batteries-for-hybrids

So your idea of somehow "flat slabs=suitable for mobiles", is nonsense.
 
Diversification is the latest strategy of these companies:
Samsung = phone/tv/computer/household appliances, tizen phone OS, also supplies display needs of competitors

Microsoft = "we are a software and device company"

Apple = desktop/phone OS and device company, interested in energy corporation?

also, is lithium-based battery technology still in and no major alternative tech in sight?
(as far as I can recall, li is already around since I was small... and so are ni-cadmium; how about miniaturized car battery for phone use? :) don't know much about battery tech so I'm grasping at straws here :) )
 
Maybe apple wants their iPhone not just a smartphone, but also as powerbank? so, when your electric car is run out of juice, you can just plug your iPhone to your electric car, then voila.. your car is charging!!
 
Back