Tesla is reportedly poised to expand its battery production activities in Nevada. To accomplish this, the electric vehicle maker will reportedly launch a new battery manufacturing plant that uses idle equipment from one of its battery suppliers, Contemporary Amperex Technology Co. Ltd. (CATL).
Citing individuals reportedly familiar with the matter, Bloomberg News noted that Tesla is looking to establish the facility in Sparks, Nevada. Tesla’s Giga Nevada facility, which is jointly operated with Japanese battery maker Panasonic, and which produces 2170 cells, is also located in the area.
As per the publication’s sources, Tesla will have complete control and ownership of the upcoming battery facility. The EV maker will reportedly also handle the full cost of the plant, with CATL only being involved the facility’s equipment setup. Interestingly enough, the upcoming battery facility will reportedly not produce cells for Tesla’s electric vehicles.
Instead, Bloomberg‘s sources claimed that the upcoming plant would produce battery cells for the Tesla Megapack, the electric vehicle maker’s grid-scale energy storage system. The facility is reportedly part of the company’s efforts to bring LFP (lithium-iron-phosphate) battery production into the United States.
The Tesla Megapack already uses CATL cells, and Tesla is reportedly planning to produce the same types of batteries in its upcoming Nevada plant. Considering that the new facility will not be producing new types of cells, there seems to be a fairly good chance that the upcoming plant will be able to ramp its production in a relatively quick manner.
As highlighted by CEO Elon Musk during the Q4 and FY 2023 earnings call, Tesla is not competing with its suppliers when it comes to battery production. Instead, the EV maker is “very appreciative of our suppliers,” one of which is CATL.
Tesla’s upcoming Nevada battery facility will reportedly have an output of about 10 GWh, though this could increase if the initiative proves successful and if the company is successful in establishing a supply chain. Estimates reportedly indicate that the facility won’t be able to start its operations until next year, 2025.
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