Tesla begins to develop its own battery cells in a secret laboratory in an effort to control its own supply chain, the report said
- Tesla will make its own batteries according to a new report
- The switch shifts depending on Panasonic, the company's largest partner
- Batteries are currently being developed in a secret lab next to the Tesla factory
- A complete transition to battery production is unlikely to take place in the near future
- The report comes between souring relationships between Panasonic and Tesla
Tesla is planning another trip to control its own supply chain, says a new report.
According to CNBC, which interviewed several former and current employees of car manufacturer Elon Musk, the company is actively developing its own battery cells with which Tesla could break ties with the current provider, Panasonic.
Tesla's experiments, reportedly taking place in a secret laboratory next to the production planet in Fremont, California, would be a blessing to the company whose electric cars depend on sustainable and advanced battery technology.
Tesla wants to take over the production of its batteries according to a new report from CNBC.
As noted by CNBC, battery packs and cells are the primary costs for making electric vehicles, meaning that if Tesla could successfully control its own battery production, it could theoretically reduce costs in its supply chain and ultimately reduce costs for consumers .
Sources interviewed by CNBC report that the company is unlikely to achieve full battery independence in the near future and is expected to continue its relationship with Panasonic for the time being.
CNBC reports that the company is focusing its efforts on making lithium-ion batteries with the aim of ultimately producing them in large volumes.
The reported intention to build its own batteries marks the last indicator of an increasingly acidic relationship between Tesla and Panasonic.
In April, Musk blamed Panasonic for slowing Tesla's production pace because the company will not increase production of its cars until production at the combined Gigafactory achieves an output of 35 gigawatts per year.
As announced by Musk, Tesla is working on the & # 39; vertical integration & # 39; of the company's production.
Panasonic claims it has been able to deliver that capacity.
In the meantime, Tesla has continued to cut costs, lay off employees and curb expenses that some investors feared could get out of hand. In the first quarter of 2019, Tesla lost $ 700 million.
If this succeeds, Tesla's battery development would expand a company strategy to keep most of its important important manufacturing processes in-house.
In addition to operating its own factories, Tesla also sells the company's technology, including software that helps automate business processes.
WHAT IS & # 39; GIGAFACTORY & # 39; FROM TESLA?
Tesla & # 39; s & # 39; Gigafactory & # 39; is located on Electric Avenue in Sparks, Nevada.
The factory name comes from & # 39; giga & # 39 ;, a unit of measurement that displays billions.
One gigawatt hour is the equivalent of generating one billion watts during one hour – one million times that of one kilowatt hour.
Tesla says the plant will produce 35 gigawatt hours of batteries in 2018.
The current structure has a footprint of 1.9 million square feet, which houses 4.9 million square feet of operational space over several floors
It is currently about 30 percent complete – and once completed, it will be the largest building in the world
That is the equivalent of producing the entire world in 2014.
New York City uses around 52 gigawatt hours of energy per year.
After completion in 2020, the factory becomes one of the largest buildings in the world with a final size of 10 million square meters.
The current structure already has a footprint of 1.9 million square feet, which houses 4.9 million square meters of operational space over several floors.
& # 39; Once completed, we expect the Gigafactory to be the largest building in the world, & # 39; said Tesla.
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