Panasonic Sees Gigafactory 1 Profit In Near Future

Tesla battery production


Gigafactory will be profitable for Panasonic “at a very early stage.”

Panasonic turned attention on itself when it said that ramp-up expenses at the automotive battery factory in North America (Tesla Gigafactory) lowered its financial results in the third quarter.

Now, Panasonic President Kazuhiro Tsuga encourages that profits on battery production for Tesla Model 3 are just around the corner, while local production in Japan (for Model S and Model X) is already profitable (probably for a long time now we’d guess).

““We will be in a position to deliver profits at a very early stage,” Tsuga said, declining to specify a timeline. “There is no doubt about it, once we complete the current build-up.””

Tesla Gigafactory will be ready to crank out 35 GWh of cells using 13 production lines by the end of this year (two more need to be launched). The total costs on Panasonic’s side is to exceed 200 billion yen ($1.8 billion). That gives us the number of more than $51/kWh of installed annual production capacity.

““Once things settle down, you can control profit on line-by-line basis,” he said. “The first 10 lines are pretty much already there.””

According to Panasonic Chief Financial Officer Hirokazu Umeda, company operations will begin to contribute to profit from this quarter.

Panasonic finally will be able to produce enough battery cells to not slow Tesla’s production of cars too. The 35 GWh should last for almost 440,000 cars (assuming 80 kWh batteries) to 700,000 cars (assuming 50 kWh batteries). Energy storage production currently stands at around 1 GWh annually.

Source: Bloomberg via Yahoo

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7 Comments on "Panasonic Sees Gigafactory 1 Profit In Near Future"

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1 million Tesla cars/year worldwide in the near future is great news for everyone.
Looking forward to it. Given how more reliable evs are and low running costs the replacement of ICEs will be swift.

Go Elon!

I really love and admire what Tesla is doing. And i dont realy see anyone caching up anytime soon
Go Elon go!

I know the article you linked says 35 GWh/year by end of 2018, but that’s wrong. It’s somewhere in the 25-28 GWh range. That will support Tesla’s 7000/week goal. They will add more if needed in 2019.

Exactly how do you know this?

He is a great story teller with nothing clear to go on…

“Exactly how do you know this?” Statements from Tesla and Panasonic. Plus common sense. Panasonic had 10 lines running in late summer. Each line has 14 machines which can each do 20,000 cells/day. Multiply it out and you get a bit over 1.8 GWh/year per line, so 18+ GWh/year total. (This info comes from Carsonight on Electrek, who has inside contacts and has been a pretty reliable source over time). Musk confirmed these numbers in the summer, saying they were close to 20 GWh/year. Also note 18+ GWh is enough for 225k Model 3 LRs, or 56k/quarter which is slightly above Tesla’s 53k production in Q3. In late summer Panasonic said they would add three lines by yearend. In late October Straubel said one line was in and two more would be running around yearend. Three lines adds 5.5 GWh/year, for about 24 GWh/year total. There are rumors the new machines can do 30% more cells/day (26,000). Some say 30,000. If so, the three new lines add 7-8 GWh, for ~26 GWh/year total. 26 GWh/year will supply just over 7000 Model 3s/week, assuming a 60/40 mix of LR/SR. Since 7000/week is Tesla’s new goal for Fremont, it doesn’t make sense… Read more »

Won’t panasonic demand more profits in the future and won’t these demands cut into tesla’s profits at some point in the future?