Leading electric car manufacturer Tesla has announced it will team up with electronics giant Panasonic to create a massive new battery manufacturing plant in the US.
The so-called ‘gigafactory’ will primarily produce essential components for Tesla’s all-electric range but will also work on energy storage technology.
Tesla say the factory will allow them to lower costs by consolidating the supply chain, making their lithium ion batteries 30% cheaper.
Under the terms of the deal, Panasonic will manufacture and supply the lithium ion cells and invest in the required equipment and machinery. Tesla will then assemble the battery modules and packs.
The facility, which may cost as much as $5 billion (£2.9bn), will be based in Nevada, Arizona, Texas, New Mexico or California and is expected to create around 6,500 jobs by 2020.
“The gigafactory represents a fundamental change in the way large scale battery production can be realised,” said JB Straubel, chief technical officer and co-founder of Tesla.
“Not only does the gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications.”
Indeed, some analysts expect the factory to have an even bigger impact on the energy sector than on the automotive sector.
Writing after plans for the gigafactory were unveiled earlier this year, Morgan Stanley’s Adam Jonas said Tesla could no longer be seen as just a niche premium auto manufacturer.
“Tesla’s quest to disrupt a trillion dollar car industry offers an adjacent opportunity to disrupt a trillion dollar electric utility industry. If it can be a leader in commercialising battery packs, investors may never look at Tesla the same way again,” he wrote.
‘‘If Tesla can become the world’s low-cost producer in energy storage, we see significant optionality for Tesla to disrupt adjacent industries.”
Photo: jecoopr via Flickr
Like our Facebook Page
How Can Technology Help You To Lead A Sustainable Lifestyle?
4 Factors That Can Save The Environment Along With Going Paperless
How Peer to Peer Works On Eco-Friendly Trading Platforms
5 Questions Eco-Friendly Entrepreneurs Need To Ask Unhappy Employees
Is Trade Good or Bad for the Environment (Examples and Laws)
7 Best Investments to Make for an Eco-Friendly Business
4 Tips For Choosing An Eco-Friendly Home Backup Power Source
10 Things To Consider When Choosing A Home Solar Company
5 Sustainable Ways Of Disposing Building And Demolition Waste
Why 2022 Is Your Last Chance to Get a 26% Return on Your Solar Kit
Low Emission and Clean Air Zones: What You Need To Know
A Guide to Eco-Friendly Landscaping
12 Essential Things for Buying Your First Home
Zero Waste Living and Its Importance
Harnessing Sustainability with User-Centric Technology Innovation
How the U.S. Government is Promoting Green Energy in the Country
Tips for Optimal Waste Management in Your Home
Is It Possible to Work in Tech Without Harming the Planet?
Hypermiling: The 3 Ways To Drive Your Car For Maximum Fuel Efficiency
Making Your Dream of Having an Eco-Friendly Garden Come True
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy12 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor