Tesla will build a complete lithium-ion battery plant in U.S.

AUTOMOTIVE NEWS

Published: February 27, 2014 10:36 am ET
Updated: February 27, 2014 10:43 am ET

Image By: Tesla Motors Inc. Production at Tesla's "Gigafactory" for lithium-ion batteries has everything from separators to final battery packs.

Related to this story

Topics Sustainability, Automotive

Tesla Motors Inc. said it plans to invest $2 billion in a U.S. car battery plant that will be capable of supplying lithium-ion packs for 500,000 vehicles a year by 2020, including an in-house separator manufacturing.

The "Gigafactory," which is expected to go online in 2017, is part of Tesla's blueprint for a more affordable electric vehicle and would be the first major, integrated U.S. facility producing battery cells for electric cars.

Although the company has not released many details yet, it does call for a complete production cell, from separators to final battery packs. Separators are a thin thermoplastic film at the center of every battery.

The company said in a blog post on its website Feb. 26 that it has narrowed the list of sites for the plant to locations in Nevada, Arizona, New Mexico and Texas and that "final site selection activities are underway."

In addition to its own investment, Tesla will involve key suppliers who are in turn expected to invest another $2 billion to $3 billion by 2020.

The giant factory will allow Tesla "to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead," the company said.

By 2020, the plant is projected to produce more lithium-ion batteries annually than were produced worldwide in 2013.

"By the end of the first year of volume production of our mass market vehicle, we expect the Gigafactory will have driven down the per kilowatt cost of our battery pack by more than 30 percent," Tesla said.

Tesla expects the plant to employ 6,500.


Comments

Tesla will build a complete lithium-ion battery plant in U.S.

AUTOMOTIVE NEWS

Published: February 27, 2014 10:36 am ET
Updated: February 27, 2014 10:43 am ET

Post Your Comments


Back to story


More stories

Image

Startup post-consumer recycling specialty company Zzyzx wins grant

September 2, 2014 1:33 pm ET

An Allentown, Pa., company is receiving a grant of $737,000 to help support its efforts to develop polymers using post-consumer plastics.    More

Image

Europe recycled equivalent of 65 billion PET bottles in 2013

September 2, 2014 10:38 am ET

New figures from Petcore Europe said the equivalent of around 65 billion bottles — 1.64 million metric tons — was recycled in the region...    More

Image

EcoCortec develops marine degradeable film to help reduce debris

September 2, 2014 9:55 am ET

Croatian specialist packaging producer EcoCortec has developed marine biodegradable film products designed to combat the scourge of plastics...    More

Image

California lawmakers give final approval to plastic bag ban

August 30, 2014 6:00 am ET

Under the measure, single-use plastic bags will be barred from California retailers, including grocery stores, convenience stores and drug stores, as ...    More

Image

Green trend boosts plastic building materials business in China

August 29, 2014 9:42 am ET

The greening of China's domestic building materials market is giving the plastics industry a boost.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events