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The latest news from Japan is that Tesla has managed to strike a deal with Panasonic in order to build a specialize...
The latest news from Japan is that Tesla has managed to strike a deal with Panasonic in order to build a specialized Gigafactory to build electric batteries for Tesla’s upcoming line of vehicles.
Nikkei of Japan reported that Panasonic will invest from 20 to 30 billion yen ($194 billion to $217 billion and will be tasked to equip the factory with machines for producing the lithium-ion batteries Tesla needs. The total investment in the factory is said to reach an impressive $5 billion, of which $1 billion will be provided by Panasonic. Panasonic is a stakeholder in Tesla and manufactures the batteries that Tesla uses in their electric cars.
Nikkei also reported that the partners will make the deal official by the end of July. Tesla will move forward with the first phase of construction by the end of the fiscal year, the report stated.
The Japanese newspaper also relayed that production of the batteries would begin in 2017, the year when Tesla is reportedly expected to begin manufacturing its Model 3 sedan, which will cost only $35,000 and require a much larger battery production line than the one Tesla has in place, according to CNET.
The Gigafactory’s capacity will grow in phases, according to demand. Tesla and Panasonic’s aim is to manufacture enough batteries by 2020 in order to push out 50,000 electric cars per year, Nikkei said.
In comparison, Tesla’s annual output of their Model S fell somewhere in the range of 20,000 cars a year in the US, according to estimates.
The location of the Gigafactory remains secret. Tesla is looking at three possible locations, all in the US.