It cannot be denied that Tesla Gigafactory 1 is responsible for producing not only battery packs but also battery cells. It is basically a process that is made using the company’s alliance with Panasonic. Interestingly, in a report from Electrek, it is rapidly becoming the automaker’s most important asset – especially not that it has been successful in delivering over half a billion battery cells.
It holds true that securing battery cell supply is the most essential part when it comes to boosting electric vehicle production. This is especially true for giant automakers like Tesla. As a matter of fact, most, if not all of them, apply the same level of approach in order to issue huge contracts meant for battery manufacturers, though a good number of them is involved in cell design.
Interestingly for Tesla, it has found a way to come up with a strong move by getting involved in both car design and battery cell supply chain. The automaker did this by creating an alliance with Panasonic and, at the same time, building the Tesla Gigafactory 1. The latter, in particular, is its own manufacturing facility.
According to official reports, both of the companies have shed billions on the project. And, in one way or another, the latter is ripe for success. This milestone is achieved by becoming the biggest manufacturer of battery cell in the world, the type that boasts an annualized output of over 20 GWh.
To put it simply, Panasonic and Tesla are able to produce around 600 million individual battery cells. This figure is able to represent a figure of around 11 GWh of energy capacity. It should be noted, however, that these battery cells only apply to Model 3.
Tesla Gigafactory 1, in particular, is successful in generating 2170 cells for the automaker’s very own stationary energy products. But apart from doing that, it is also capable of importing cells for the same products. This narrative, in some ways, makes it a bit harder to identify the battery cell contribution from the said manufacturing facility.
The capacity, on the other hand, is expected to dramatically increase to 35 GWh. Plus, it should arrive with a totally new production line courtesy of Panasonic. Meanwhile, the Japan-based electronic company is also in talks with Elon Musk’s company as the two try to increase the investment involving Gigafactory 1 and making it go the usual 35 GWh capacity.
The volume of Gigafactory 1 when it comes to battery cell production is giving the San Francisco-based automaker the ability to manufacture long-range electric cars. And what is even interesting is that it is at pace that comes with higher rate as compared to any other vehicle manufacturers across the globe. In addition, the car giant is said to gain cost advantage when it comes to battery cells.
According to another report, Tesla’s very own Gigafactory 1 battery cells appear to have about 20 percent cost advantage when compared to LG Chem. It should be noted that the latter is deemed a global leader in EV battery, a definition confirmed by many. The same reports also suggest that the battery cells’ cost, which is at $111 per kWh, but LG Chem comes at about $148 per kWh.
Tesla recently mentioned about its goal to hit the $100 per kWh-mark, something it wants to achieve by the end of last year. It is basically the new cost level that would enable the company’s production of the standard Model 3 battery pack sometime next year. Furthermore, the automaker’s very own President of Automotive named Jerome Guillen stated that they are rigorously working on developing a new and improved battery cell design.