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Tesla and Panasonic Finalize Gigafactory Partnership

Motor Trend logo Motor Trend 7/31/2014 Erick Ayapana
2013 Tesla Model S© Provided by MotorTrend 2013 Tesla Model S

Tesla Motors is set to break ground at two sites, one of which will be home to its new battery factory in 2017. Now, the automaker has confirmed its partnership with Panasonic for the endeavor. Tesla has yet to announce the location for its so-called Gigafactory, but it plans to have two sites in separate states ready to go just in case construction is delayed at one of them.


The partnership with Panasonic is not surprising. The two companies already work together, and the Gigafactory will be their largest project yet. Tesla will be charged with building and managing the facilities, while Panasonic will produce the lithium-ion cells, along with the necessary tools and equipment needed to build the batteries. The companies will also rely on a network of suppliers for the requisite materials. Tesla states it will continue to purchase batteries from Panasonic’s factory in Japan.

Tesla is building the Gigafactory facility to streamline battery production and to help meet increased demand for its vehicles, including the Model S and upcoming Model X and Model 3. The factories will require an estimated $5 billion investment and will create at least 6500 jobs and 50GWh of packs by 2020. Current rumors suggest that CEO Elon Musk is considering Nevada, Texas, Arizona, New Mexico, and California as possible States for the new factories.

Source: Tesla


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