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Panasonic Provide Spark For Tesla

Panasonic Provide Spark For Tesla

As the relentless march towards alternative automotive fuels continues, it has been announced that Panasonic and Tesla Motors, have signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the USA, to be known, rather unimaginatively, as the Gigafactory.

Inside The Gigafactory

According to the agreement, Tesla will prepare, provide and manage the land, buildings and utilities. Panasonic will manufacture and supply cylindrical lithium-ion cells and invest in the associated equipment, machinery, and other manufacturing tools based on their mutual approval. A network of supplier partners is planned to produce the required precursor materials.

t1 Panasonic Provide Spark For TeslaTesla will take the cells and other components to assemble battery modules and packs. To meet the projected demand for cells, Tesla will continue to purchase battery cells produced in Panasonic’s factories in Japan.

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 Gigafactory will be managed by Tesla with Panasonic joining as the principal partner responsible for lithium-ion battery cells and occupying approximately half of the planned manufacturing space; key suppliers combined with Tesla’s module and pack assembly will comprise the other half of this fully integrated industrial complex.

The Electric Future

The Gigafactory is meant to represent a fundamental change in the way large scale battery production can be realized. Not only does the Gigafactory enable capacity needed for the Model 3 Tesla but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications. Economies of scale, in other words.

Cost reductions will be achieved through optimized manufacturing processes previously unobtainable in battery cell and pack production. Further price reductions are achieved by manufacturing cells that have been optimized for electric vehicle design, both in size and function and also by co-locating suppliers on-site to eliminate packaging, transportation and duty costs along with other ancillary expenses. Anything that brings down the cost of EV’s in the medium to long term has got to be a good thing.

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- who has written 474 posts on Motor Blogger.

Geoff is a freelance writer and photographer.

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