Tesla is readying a new battery production plant known as the Gigafactory, and company CEO Elon Musk says it will be “heavily powered” by solar and wind energy.
The gigfactory will handle battery pack production from start to finish, allowing Tesla to handle production of batteries for its cars internally. Currently, the company buys battery packs through a deal with Panasonic, though Tesla has already said that it needs more capacity to keep up with demand.
Need for more batteries will also heavily increase once Tesla begins to expand its portfolio, first with the Model X SUV and then later with a mass-market electric vehicle that will cost around $30,000, likely called the Model E. To achieve the low price tag of the Model E, Tesla needs to maximize economies of scale, and the gigafactory should help Tesla reduce battery costs by between 30 and 40 percent according to Musk.
Production volume at the gigafactory is expected be at least the equivalent of 30 gigawatt-hours per year, which means that the gigafactory would produce more storage than all the lithium battery factories in the world combined.
Nevada is rumored to be the location for the new Tesla facility, although those details are still unknown. Tesla has said that it will release more information concerning its new factory in the near future.
[Source: Autoblog Green]
Discuss this story at our Tesla Model S Forum