Elon Musk plans GIGAFACTORY to feed his thirsty Tesla motors
'Leccy carmaker wants its very own battery-building plant at home in the US
Tesla Motors is planning to announce the world's biggest battery plant for the US this week, a plant so big that chief exec Elon Musk is calling it the "Gigafactory".
The electric car-maker has had ongoing problems with ramping up production of its Model S and X vehicles because of a lack of steady supply of batteries from its main partner Panasonic and other firms.
Shortages in supply have frequently delayed promised delivery of cars and prevented the firm from taking its production lines up a gear.
To combat this, Musk is planning an American battery factory that will make batteries from raw materials instead of components, lowering its costs.
As Tesla will be partnering in the plant, batteries should come off the line fit-for-purpose for existing Tesla cars and any future models the firm plans on.
Musk told analysts last week about the potential for the factory, but without going into too much detail. Today, the Nikkei newspaper in Japan said that Panasonic, which is in talks to partner with Tesla in the factory, was on a shopping trip for other Japanese suppliers who might like to invest in the plant. The newspaper claims that the investment for the factory is expected to reach more around $1bn.
Shares in both Panasonic and Tesla have been boosted by the new factory chatter. Panasonic stock gained 5.27 per cent in Tokyo today, while Tesla shares jumped nearly 14 per cent yesterday and had gained another 6.5 per cent in early trading today. ®
Sponsored: The Nuts and Bolts of Ransomware in 2016