Inside $5 Billion Tesla's Gigafactory, Elon Musk, the CEO of Tesla, has been placing an enormous bet on the world’s largest lithium-ion battery plant called "Gigafactory". With a cost of around $5 billion and building facilities with an area of up to 10 million-square-foot (930,000 sq m), the Gigafactory is expected to make enough battery packs to power 500,000 electric cars every year. The Gigafactory project is probably larger than any other cell-packing plant on the planet. It also produces more batteries than the entire industry did back in 2013. This facility represents a strong vision of the future of Tesla manufacturing, bringing in as many as 10,000 jobs to the area where it is based.
Tesla is building more factories all over the world for two reasons. The first is to simplify the production process. As Musk explained in February 2020, a factory on each continent means cars can reach consumers faster. Cars would have less distance to travel, and each facility could focus on meeting legal criteria for fewer territories. The second reason is that it increases production. This production will reach closer to "terawatt-hour" battery production levels. In July 2019, Musk said that this will "really make a fundamental shift in the world’s energy usage."
The capacity of Gigafactory for 2020 was to have 35 gigawatt-hours per year of cells. The power used is smaller compared to producing a battery pack which requires 50 gigawatt-hours per year (5.7 MW). One of Tesla's suppliers, Panasonic, plans to invest more to increase the capacity by 10% to 39 gigawatt-hours per year. This capacity increase is considered very important given the increasing demand for Tesla. The two companies have reached an agreement and implementation of the upgrades will begin in September 2020.
The Shanghai Gigafactory is located in Pudong District, adjacent to the Fengxian District. Currently, this factory is the main production site of the final assembly of the Tesla Model 3. These assembly products will become the Tesla Model Y. The Model Y is scheduled to begin delivery in January 2021. The initial factory production target rate is 3,000 cars a week. This number will increase to around 5,000 cars per week within the coming years.
There are four factory locations that Tesla is planning to build in the future. However, some of them are just rumors that cannot be verified. First is Giga Berlin which is expected to start operating in July 2021, then there’s Giga Texas which is still under construction since July 2020. The other two locations are Giga UK and Giga South Korea which are still said to be a rumor.
The construction of the Giga Berlin was announced by Musk in 2019, but then the ground was damaged in June 2020 causing a delay of around three months. The plant will be co-built with Giga Shanghai and is expected to produce 500,000 cars per year for the nearby market. The plan is that Giga Berlin starts producing cars by July 2021.
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Time Stamps:
00:00 Intro
00:50 Elon Musk
02:43 Gigafactory Nevada
04:32 Gigafactory NewYork
06:00 Gigafactory Shanghai
What it's like Inside Tesla Gigafactory? 2021 Update
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