Tesla partners with Panasonic for their $5 billion Gigafactory

Elon Musk led Tesla has announced a new agreement with Japan’s Panasonic for their $5 billion Gigafactory project. To be operational by 2020, this factory of Tesla will be the largest producer of lithium-ion batteries in the world.

Tesla partners with Panasonic for their $5 billion GigafactoryAs per the official information revealed, Tesla and Panasonic have agreed to co-operate in the construction of Gigafactory in America. To be built over an area of 500-1000 acres, this new factory will bring the cost of batteries significantly down, thus enabling an individual with average income as well to afford an electric car.

By 2020, Tesla Gigafactory aims to produce 35GWh of cells and 50GWh of packs per year, which will be enough to meet their expected demand of 500,000 cars per year. Tesla will also need 6,500 employees to run this mammoth battery factory by 2020.

As per the official statement, in the construction of Gigafactory, “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.”

Tesla’s Gigafactory is an important project. Without it, the possibility of reducing the cost of batteries is not feasible. This big factory will also accommodate on-site suppliers and packaging vendors, there by reducing costs of transportation, duty, etc.