Tesla inks landmark deal with Panasonic to build Gigafactory on US soil

[Shawn Knight]

Tesla has signed a deal with electronics maker Panasonic to build a massive battery production plant in the US. The Gigafactory, as it's being dubbed, will be a crucial step in the production of Tesla's upcoming Model 3 which is slated to arrive sometime in 2017.

As per the agreement, Tesla will prepare, provide and manage the land, buildings and utilities for the Gigafactory. Panasonic, meanwhile, will manufacture and supply cylindrical lithium-ion cells and invest in the associated equipment, machinery and other manufacturing tools based on their mutual approval.

A network of suppliers will be in place to ensure the facility has access to production materials at all times.

The facility, which will require an investment of up to $5 billion, is expected to create some 6,500 new jobs. It'll produce 35GWh of cells and 50GWh of packs per year by 2020 but in the interim, Tesla will continue to purchase batteries from Panasonic's factories in Japan for current and existing vehicles like the Model X.

Naturally, a number of states are vying for the bid with finalists including Arizona, California, Nevada, New Mexico and Texas. No word yet on when Tesla will decide where to build the Gigafactory.

The upcoming Model 3 is likely to be the vehicle that puts Tesla on the map. At $35,000, it'll be the first electric vehicle from Tesla that'll be affordable to the masses. The current Model S sells for around $70,000 or more.

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https://www.techspot.com/news/57592-tesla-inks-landmark-deal-with-panasonic-to-build-gigafactory-on-us-soil.html

 

[Greg S]

I want some affordable 18650 batteries for project use not to drive to work with.

 

[insect]

Arizona, California, Nevada, New Mexico and Texas

Hmm - which of these states allows Tesla to sell directly to consumers?

http://media.treehugger.com/assets/images/2014/05/Where-Tesla-Can-Sell-Cars-in-the-USA-corrected.jpg.662x0_q100_crop-scale.jpg[/img

So probably Nevada or California... and given the infrastructure needed for something like this, including the massive amounts of electricity required... California.

Of course for the tax revenue, political "we did it" moment, and such the other states might turn around their backwoods ideas that cars have to be sold via dealer and invest at least as much tax money in setting up a power-plat next-door.

 

[IAMTHESTIG]

I bet all the pollution associated with running the plan, including manufacturing batteries and procuring the materials required (mining) will be higher than all the Tesla brand electric vehicles they sell can compensate for versus the customers buying a standard econo car like a Mazda 3. In other words it would probably be greener to not produce the Tesla and those customers buy a Mazda 3.

I look forward to a study to prove me wrong, or right...

 

[insect]

I bet all the pollution associated with running the plan, including manufacturing batteries and procuring the materials required (mining) will be higher than all the Tesla brand electric vehicles they sell can compensate for versus the customers buying a standard econo car like a Mazda 3. In other words it would probably be greener to not produce the Tesla and those customers buy a Mazda 3.

I look forward to a study to prove me wrong, or right...

The pollution associated with spent batteries, mining, etc. will be higher. The point of electric vehicles is that Oil is a limited resource whereas electricity is a renewable resource (via solar, wind, tidal, chemical, etc.).

 

[mailpup]

I could be wrong but it would be hard to imagine the factory being built in California, taxes, drought, etc. being what they are. Toyota moving from Torrance, California to Plano, Texas should convince Tesla/Panasonic. I don't know where they will go but just not California.