Elon Musk Sees the Need for Hundreds of Gigafactories

Elon Musk Sees the Need for Hundreds of Gigafactories

When the new Tesla “gigafactory” opens, CEO Elon Musk says that the price of lithium-ion cells will drop by 30 percent. But that isn’t enough according to Musk.

Speaking at the World Energy Innovation Forum, Musk said that demand for low-cost batteries for autos and power storage will in the future be able to support hundreds of gigafactories. “I think we can probably do better than 30 percent,” said Musk. “There’s going to need to be lots of gigafactories. Just to supply auto demand you need 200 gigafactories,” he said.

SEE ALSO: Gigafactory Details

When the first gigafactory opens, it will be largest single producer of lithium-ion batteries in the world, and it will help Tesla launch lower cost models. The location still isn’t known, but Musk says that the gigafactory will cost about $5 Billion.The plant will add around 6,500 jobs with facility construction starting this year and aiming to be finished by 2015. The Gigafactory will then spend 2016 having its equipment installed before production launch begins in 2017.

[Source: Automotive News]

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