Tesla and Panasonic Sign Deal for Gigafactory | Edmunds

Tesla and Panasonic Sign Deal for Gigafactory


Just the Facts:
  • Tesla Motors and Panasonic have signed a deal to build a "Gigafactory," a large plant in the U.S. that will provide advanced batteries for mass-market electric cars, including the electric 2017 Tesla Model 3.
  • "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," said JB Straubel, Tesla chief technical officer and co-founder of Tesla Motors, in a statement on Thursday.
  • The Gigafactory will produce cells, modules and packs for Tesla's electric vehicles.

PALO ALTO, California Tesla Motors and Panasonic have signed a deal to build a "Gigafactory," a large plant in the U.S. that will provide advanced batteries for mass-market electric cars, including the electric 2017 Tesla Model 3.

"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," said JB Straubel, Tesla chief technical officer and co-founder of Tesla Motors, in a statement on Thursday.

The Gigafactory will produce cells, modules and packs for Tesla's electric vehicles.

The Tesla Model 3, which will be based on the electric car company's third-generation platform, is positioned to take aim at the BMW 3 Series. The Model 3 is expected to cost $35,000 or half the price of the current Tesla Model S.

"The Gigafactory is being created to enable a continuous reduction in the cost of long-range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass-market electric vehicles," the two companies said.

Tesla projects that the Gigafactory will employ about 6,500 people by 2020. Tesla has said the proposed plant could cost as much as $5 billion to build.

A location for the plant has not been announced, but Tesla Motors is looking at sites in states including Arizona, New Mexico, Nevada, California and Texas.

Edmunds says: As Tesla and Panasonic work to speed up the expansion of the EV market, car shoppers in the future should have more choices and cheaper alternatives.

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