Tesla And Panasonic Get Deal Done On Upcoming Battery Gigafactory

JUL 28 2014 BY STATIK 16

Tesla And Panasonic reach Agreement Over Battery Gigafactory Partnership

Tesla And Panasonic reach Agreement Over Battery Gigafactory Partnership

The details are still a little scarce, and there has been no solid leads as to where exactly Tesla’s new battery Gigafactory will be located, but Panasonic will definitely be involved in a big way.

Panasonic's 18650 Lithium-Ion Cell For Tesla Model S

Panasonic’s 18650 Lithium-Ion Cell For Tesla Model S

The Nikkei is reported that the two company’s have finally sat down and reached a basic agreement on the plant, and Panasonic’s role in it.

The Gigafactory will start supplying batteries for the California automaker in 2017.

The official announcement will be arriving shortly, but the deal is reportedly for 20 to 30 billion yen right out of the gate ($195 million to 290 million USD), and Panasonic will be “taking responsibility for equipping the factory with the machinery to make the battery cells”.

Tesla CEO Elon Musk has said the factory will eventually be able to supply up to 500,000 cars per year and cost upwards of $5 billion dollars.

It is being reportedly that Panasonic’s share of factory could ultimately reach $1 billion by 2020.

We will have all the expanded details when the two companies make a formal announcement before month’s end.  Tesla reports 2nd quarter earnings on Thursday after stock market closes, so expect more details then.  We will report on all of Tesla’s numbers and news in real time then (as well as the subsequent conference call).

Nikkei, hat tip to Patrick!

Categories: Battery Tech, Tesla

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16 Comments on "Tesla And Panasonic Get Deal Done On Upcoming Battery Gigafactory"

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GeorgeS

As Dr Macoy said to Mr Spock:

Well don’t just sit there a jawin’ Spock. Get crackin’

All kidding aside. Great news. As we already know Panasonic is a little “lite” on the up front money.

At least they are buying their own equipment.

Only problem w/Panasonic buying all their own equipment is it will all come from Japan. Sorry US manufacturers. 🙁

Rob Stark

Do US manufacturers even make this type of equipment?

Tesla is sold globally and should be sourced globally.

Still, the Model 3 should be 90% plus manufactured in the USA when all is said and done.

Boris

Oh, come on now, that’s not such a bad deal considering 2/3 of Tesla’s production will be exported…

Cavaron

My guess is, that they will aquire used machinery mostly. In terms of Laptops, Cameras etc. the 18650 form factor is a dying one. They all go for flat cells now.

IDK

Tesla and Panasonic having their Q2 Earnings Report on the same day…July 31st? 🙂

Maybe some sort of official announcement Thursday.

Mike

And then there’s this:

http://www.greencarcongress.com/2014/07/20140728-cui.html

Good Times Coming!

From paper to practice = 10+ years.

GSP

10 years until Li-Air or Li-S rechargable batteries are commercially available would be great. The time will pass quickly while Li-ion battery development reduces battery cost and weight by about 50%.

GSP

CherylG's_DirtyLittleSecret

The sad part of this is no US battery company was even considered because the US lacks in that Lithium Battery arena.

Alonso Perez

Way to see the glass one-quarter empty!

Tesla is getting Panasonic to invest hundreds of millions in a new American manufacturing facility and you’ve managed to find a problem with that.

There is nothing sad about this. The best companies should join forces regardless of where they are from. Panasonic makes the best battery Tesla has found apt for its cars. Good for them, and I wish them them both the best success with the factory.

scott franco

As usual, companies in the USA (Exxon) started the lithium battery business, then let is rot for companies outside the USA to develop.

How this is the foreign interests fault is beyond me. We have racked up a number of businesses we started and then basically abandoned, including:

LCDs
TVs
Most high density memories (flash being the exception)
CMOS

The LCD business started with Bell labs and was picked up by virtually nobody in the USA. A researcher here invented amorphous silicon semiconductors, the basis for thin film transistors, used in virtually all LCDs shipping today. He was widely ignored in the USA.

CMOS was considered a slow, second rate technology with only RCA pushing it. A Japanese researcher showed that it could be improved to run as fast or faster than the NMOS technology used in the USA. Now virtually all chips are done in CMOS.

Examples like this abound. We developed steam engines and pulled ahead of the British because they were busy suing each other over the rights to the technology instead of actually doing something with it.

And so it goes….

Anon

Excellent, Smithers… Excellent.

Anton Wahlman

I am eagerly awaiting the return on investment calculation on this one. Also, what kind of capacity utilization is assumed in these ROI calculations.

TomArt

Doesn’t really matter – as long as people buy Teslas, the factory will be pushed to capacity. It’s not an “if” question as much as a “when” question.

scott franco

“Student, you need to learn patience first”

“yea, yea, patience.. how long does that take”?

From “boot to the head”