Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Tesla reveals $5 billion Gigafactory, the world's largest battery plant
recode.net ^ | 02/26/2014 | Justin Hyde

Posted on 02/26/2014 8:56:24 PM PST by ckilmer

Tesla reveals $5 billion Gigafactory, the world's largest battery plant

Justin Hyde
Motoramic
 
Tesla Motors
.

View photo

Tesla Motors

No automaker has quite the momentum that Tesla Motors enjoys today. It sells every car it builds easily, with customers queuing around the globe. It's considered the best car for sale in America by several critics, and Wall Street has bought into Elon Musk's vision with a fervor rarely seen outside riverside baptisms. And yet everything Tesla stands for today and wants to accomplish in the future rides on a single stubborn, expensive piece of technology — the battery. 

Today, Tesla revealed its grand plan for tackling that weak spot, a $5 billion plan to build the world's largest battery plant, dubbed the Gigafactory — one that would power the company from start-up to an auto industry player with 500,000 vehicle sales a year.

Even with all the attention it's received to date, Elon Musk's firm remains a small timer as far asglobal automaking goes. Tesla plans to build 35,000 Model S sedans from its California factory this year; Ford typically builds that many F-Series pickups in about 20 days. All of those cars will rely on lithium-ion battery cells shipped from Asia, where Panasonic and other suppliers control most of the world's supply. While researchers have spent decades hunting for better ways of storing electrical energy, none has emerged as an alternative — and at the moment, there's no technology on the horizon that's better or cheaper.

The price of those cells has been the major reason the Tesla Model S and all other electric cars cost far more than gasoline-powered ones. A few automakers have built their own battery plants in the hopes of driving down costs and ensuring supplies, with Nissan's $300 million Tennessee plant the largest in the United States to date. But none have been built to the scale Tesla would need to supply hundreds of thousands of vehicles a year; the company already uses a third of all electric vehicle battery production.

Related video

In its outline, Tesla says by the time the plant goes online in 2017, the plant to lower its battery costs by 30 percent — which coincides with its plan to launch a third "affordable" all-electric model for roughly $45,000. Three years later, Tesla expects the Gigafactory would produce enough batteries for Tesla to bolt into 500,000 vehicles a year, more lithium-ion battery power than the rest of the world built last year.

The cost for doing so: roughly $5 billion, with Tesla providing up to $2 billion and current battery supplier Panasonic and other partners providing the rest. Tesla says it has narrowed the potential sites for the plant and its 6,500 jobs to four states: Nevada, Arizona, New Mexico and Texas. The company also said today it would raise $1.6 billion to help pay for the plant and developing new models.

When Tesla launched, many executives and critics questioned whether it could ever survive building expensive vehicles limited by battery range and recharging times. If Tesla can open its Gigafactory as planned, and meet the goals it's set, those critics will finally have their answer.


TOPICS: Business/Economy
KEYWORDS: automakers; battery; efv; elon; elonmusk; energy; tesla
Navigation: use the links below to view more comments.
first 1-5051-94 next last

1 posted on 02/26/2014 8:56:24 PM PST by ckilmer
[ Post Reply | Private Reply | View Replies]

To: thackney

ping


2 posted on 02/26/2014 8:58:05 PM PST by ckilmer
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

No automaker has quite the momentum that Tesla Motors enjoys today. It sells every car it builds easily, with customers queuing around the globe.

___________________________________________________

But some people right here said no one or few would buy it....

Hmmmm


3 posted on 02/26/2014 9:02:43 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

That solar and wind energy production shown better be a token just for show, because if they are going to rely on that for their production, the initial investment will be out of line with the returns, unless they can get the taxpayers to cover it.


4 posted on 02/26/2014 9:12:00 PM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dragnet2

It’s a darned cool novelty, but hundreds of thousands per year? Not very likely.


5 posted on 02/26/2014 9:13:42 PM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: ckilmer

Gigafactory have big carbon footprint.


6 posted on 02/26/2014 9:17:09 PM PST by smokingfrog ( sleep with one eye open (<o> ---)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jeff Chandler

People have been predicting their demise for years...

Obviously they were wrong...Some won’t admit it...It’s to be expected...

BTW, these vehicle are not for everyone...It’s not a Camry...


7 posted on 02/26/2014 9:18:42 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 5 | View Replies]

To: dragnet2
these vehicle are not for everyone..

That's right, and that's why you won't be seeing hundreds of thousands of them being sold every year.

They've got a nice niche, and it could be wise to expand production, but their plans are far too ambitious, barring some new energy storage technology.

There are many ways a business can fail. Over-expansion is one of them.

8 posted on 02/26/2014 9:23:01 PM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: ckilmer

Well, at least it appears there’s no free government money involved.


9 posted on 02/26/2014 9:24:42 PM PST by Mariner
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jeff Chandler
you won't be seeing hundreds of thousands of them being sold every year.

Considering the new lower cost models planned, I would not bet on it.

10 posted on 02/26/2014 9:25:01 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 8 | View Replies]

To: dragnet2

This is really good news for 6500 people looking for jobs and potential advances in baterry technology. Not to mention locating a major industry in the US instead of Asia.


11 posted on 02/26/2014 9:25:19 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: dragnet2

They are building a 5 billion dollar factory. How many people can get that far.


12 posted on 02/26/2014 9:26:33 PM PST by FreedomStar3028 (Evil must be punished.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: gunsequalfreedom

Yep...


13 posted on 02/26/2014 9:26:46 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 11 | View Replies]

To: dragnet2

It’s a small production plant, relatively speaking. It doesn’t make hundreds of thousand of cars every year, so it’s not surprising that every car might sell.

I wouldn’t buy one myself. However, if somebody came up with a hydrogen car that I could fill with distilled water and plug it in to allow the separation of hydrogen from oxygen, I’d certainly consider that if it was affordable.


14 posted on 02/26/2014 9:27:26 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 3 | View Replies]

To: dragnet2

They predicted TV would never be a success. They are the modern day George Amberson Minifers.


15 posted on 02/26/2014 9:28:02 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: dragnet2

Lithium doesn’t grow on trees.


16 posted on 02/26/2014 9:28:54 PM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Jeff Chandler

They just may do exactly what they are planning to do. They may just do it slowly and SUCCEED.


17 posted on 02/26/2014 9:28:56 PM PST by tillacum
[ Post Reply | Private Reply | To 8 | View Replies]

To: gunsequalfreedom

Yea, and if someone has a breakthrough in storage tech, then they will have to open more.
Bringing jobs to Americans, with the economy the way it is, the people behind this have balls of steel.


18 posted on 02/26/2014 9:29:37 PM PST by FreedomStar3028 (Evil must be punished.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Jeff Chandler

Sulfur batteries are cheap and they are getting close to the recharge ability and energy storage of lithium. In a few years, we might be able to start phasing out lithium.


19 posted on 02/26/2014 9:30:38 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 16 | View Replies]

To: ckilmer

Nikola approves.


20 posted on 02/26/2014 9:31:31 PM PST by matthew fuller (I don't think Obama is subhuman.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jonty30
It’s a small production plant, relatively speaking. It doesn’t make hundreds of thousand of cars every year

I would say their expansion plans are about to change that.

The electrified acceleration and smooth ride of these vehicle puts most to shame...

It's enough to make one recoil.

21 posted on 02/26/2014 9:32:08 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 14 | View Replies]

To: dragnet2

It’s still an overpriced toy.


22 posted on 02/26/2014 9:32:10 PM PST by mylife (sAL)
[ Post Reply | Private Reply | To 3 | View Replies]

To: smokingfrog; Jeff Chandler; dragnet2

I don’t know if you guys have any sense of history. But Musk’s work is the closest thing the USA now has to a strategic policy to destroy al qaeda.

How so. Well Pakistan in 1980 had 10 madrasses. Now Pakistan has 10000 madrasses. these and thousands more like them around the world serve as the large end of a funnel that eventually leads to al qaeda recruits.

Destroy that funnel and al qaeda vaporizes.

How do you destroy the funnel.

You defund it.

How do you defund it. You defund the funnel by defunding the deep pockets in the gulf states who provide the funding for the madrasses from large oil revenues.

So how do you defund the gulf states. You kill the price oil.

How do you kill the price of oil? You collapse the demand for oil.

How do you collapse the demand for oil. Take a look at Tesla. That’s an electric car. they don’t need gasoline. Now, not many will be produced in the next couple years. and even the 500k goal for 2020 that tesla has made for itself by 2020 is still a drop in the bucket. But if the expansion of tesla sales expansion continues for another 10 years at the same pace —that will cap and collapse the demand for oil. If Tesla is producing 500k cars in 2020— you can bet the majors world wide will be jumping head first and pell mell into the game. So the total number of electric cars will be much higher.

Now combine that with a 30% annual expansion of the number of natural gas power trucks and buses...

What you have is a 15 year strategic plan to destroy al qaeda courtesy of the USA culture itself.

This would do George Kennan proud. (He was the formulator of the Containment policy in 1948 which strategic policy— 40 years later lead to the collapse of the old soviet union.)


23 posted on 02/26/2014 9:34:31 PM PST by ckilmer
[ Post Reply | Private Reply | To 6 | View Replies]

To: Jonty30

amen to that, as long as the range was equal or better and it was a nice sized suv.


24 posted on 02/26/2014 9:35:02 PM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: dragnet2

you won’t be seeing hundreds of thousands of them being sold every year.

Considering the new lower cost models planned, I would not bet on it.
....................
the lower cost is from the economies of scale they’ll get from making a big battery factory...not from the feds.


25 posted on 02/26/2014 9:36:04 PM PST by ckilmer
[ Post Reply | Private Reply | To 10 | View Replies]

To: Jeff Chandler

There are many ways a business can fail. Over-expansion is one of them.
.............
right now tesla can’t keep up with demand.


26 posted on 02/26/2014 9:37:16 PM PST by ckilmer
[ Post Reply | Private Reply | To 8 | View Replies]

To: ckilmer

I aint seen one on the street.

In 1900 all you saw was electric cars on the street.


27 posted on 02/26/2014 9:39:06 PM PST by mylife (sAL)
[ Post Reply | Private Reply | To 26 | View Replies]

To: smokingfrog

“Gigafactory have big carbon footprint.”

True, but if TSLA can see their way clear to join the exclusive club of crony capitlists, the EPA will turn a blind eye.


28 posted on 02/26/2014 9:42:31 PM PST by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
[ Post Reply | Private Reply | To 6 | View Replies]

70K? LOL I am buying something else.


29 posted on 02/26/2014 9:45:53 PM PST by mylife (sAL)
[ Post Reply | Private Reply | To 28 | View Replies]

To: ckilmer

I’m nominating your post as post of the month with a suggestion it also be in the running for post of the year.

I guess that is a cute way of saying you are spot on with your comment.


30 posted on 02/26/2014 9:49:55 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: mylife

That’s hilarious. You ain’t seen one on the street?

I drive through the heart of Silicon Valley every day.

Tesla model S’s are EVERYWHERE.

One butt wipe tried to cut me off this AM in one. I pushed back and he backed off.

Too proud of all that expensive metal....

Musk will make it. He’s serious about this. He will build what’s needed, he wont buy it. He’s not a management dweeb who depends on supply chains.

He’s an Engineer and an entrepreneur, a pure capitalist. He’s going the direction he planned.


31 posted on 02/26/2014 10:01:57 PM PST by Regulator
[ Post Reply | Private Reply | To 27 | View Replies]

To: mylife

>>I aint seen one on the street.

In 1900 all you saw was electric cars on the street.<<

Because 5 hours ‘fast’ re-charge is a joke. It makes sense for a delivery truck in urban environment, but try drive it to Florida.


32 posted on 02/26/2014 10:03:52 PM PST by cunning_fish
[ Post Reply | Private Reply | To 27 | View Replies]

To: ckilmer

That’s what Musk has in mind.

Get the U.S. Off of oil, let the Arabs drink their black juice.

Others talk, he does.

Al Qaeda will end up walking.


33 posted on 02/26/2014 10:04:52 PM PST by Regulator
[ Post Reply | Private Reply | To 23 | View Replies]

To: ckilmer
It sells every car it builds easily, with customers queuing around the globe.

Yeah - those customers who can afford to plink down a minimum of $85K for a car ...

34 posted on 02/26/2014 10:25:13 PM PST by Lmo56 (If ya wanna run with the big dawgs - ya gotta learn to piss in the tall grass ...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lmo56

Read the article...45k is the target price of their new model.


35 posted on 02/26/2014 10:28:11 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 34 | View Replies]

To: Lmo56

It sells every car it builds easily, with customers queuing around the globe.

Yeah - those customers who can afford to plink down a minimum of $85K for a car ...
................
true. much of the cost is the car battery. In three years with mass production, they want to reduce the cost of car batteries so much they can get the same performance for 35k.

That’s still more than what I want to pay but there are many more buyers who can afford a 35k car.


36 posted on 02/26/2014 10:29:50 PM PST by ckilmer
[ Post Reply | Private Reply | To 34 | View Replies]

To: ckilmer; mylife; dragnet2
I trust Sarah Palin who said:

This losing tax-subsidized venture joins other past losers like the Obama-subsidized Volt that gets 40 miles per battery charge, or like the Obama-subsidized Tesla that turns into a ‘brick’ when the battery completely discharges and then costs $40,000 to repair. This is really just the latest manifestation of the administration’s crony capitalism as their green energy buddies benefit from this atrocious waste of taxpayer money. Americans really need to get outraged by these wasteful ventures. As we’ve seen time and time again, We the People are always stuck subsidizing the left’s ‘losers.’

Although not a long telegram, Governor Palin's full remarks about Tesla are here. And that genuine American patriot has a real strategic plan to destroy the muzzies.


37 posted on 02/26/2014 10:31:15 PM PST by re_nortex (DP - that's what I like about Texas)
[ Post Reply | Private Reply | To 23 | View Replies]

To: MichaelCorleone; smokingfrog

Albuquerque is one of the finalists in their location hunt. I read up on this when I first heard the rumor and the story I read was that the factory is supposed to be very green.

From article: CEO Elon Musk told reporters, “This is going to be a very green factory. There is going to be a lot of solar power. It’s going to have essentially zero emissions and there are no toxic elements that are going to come out of this factory and we will build in recycling capability right into the factory. It is going to be a really giant facility, like say we are doing something that’s comparable to all lithium-ion production in the world in one factory.”

Read more at http://cleantechnica.com/2014/02/23/will-telsa-build-gigafactory/#yvU0dUmMl5PAjrrM.99


38 posted on 02/26/2014 10:32:02 PM PST by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
[ Post Reply | Private Reply | To 28 | View Replies]

To: dragnet2

Read the article...45k is the target price of their new model.
............
that’s the interem step. they want a model out in 2016-7 that can go for about 35k.


39 posted on 02/26/2014 10:32:06 PM PST by ckilmer
[ Post Reply | Private Reply | To 35 | View Replies]

To: Jeff Chandler
They've got a nice niche,

At one time, Amazon had a nice niche selling books.

40 posted on 02/26/2014 10:32:16 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: re_nortex

bump


41 posted on 02/26/2014 10:32:23 PM PST by GeronL (Vote for Conservatives not for Republicans!)
[ Post Reply | Private Reply | To 37 | View Replies]

To: ckilmer
Collapse the price of oil and you collapse the industry keeping America afloat right now.

It is a question of where our money goes, and whether we fund our adversaries, or whether we spend it in America. Otherwise, Asia will keep demand for oil up as a global commodity.

42 posted on 02/26/2014 10:32:39 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: ckilmer
It sells every car it builds easily, with customers queuing around the globe.

What did they get from Stimulus, a half billion or something? Probably a million bucks per car sold.

43 posted on 02/26/2014 10:34:29 PM PST by GeronL (Vote for Conservatives not for Republicans!)
[ Post Reply | Private Reply | To 36 | View Replies]

To: leapfrog0202
CEO Elon Musk told reporters, “This is going to be a very green factory."

And that tells me everything I need to know. He's a tree hugger. As noted in my earlier post Governor Sarah Palin nailed this guy to a T.

44 posted on 02/26/2014 10:37:02 PM PST by re_nortex (DP - that's what I like about Texas)
[ Post Reply | Private Reply | To 38 | View Replies]

To: re_nortex; mylife; dragnet2

I love sarah but disagree with her on this one.

for one thing the funds from the feds that tesla tapped were set up under George Bush. For another, the loan was paid back in full with interest.

Obama’s only part in this story has been and will be that he happened to be president during this time period.


45 posted on 02/26/2014 10:37:24 PM PST by ckilmer
[ Post Reply | Private Reply | To 37 | View Replies]

To: GeronL

What did they get from Stimulus, a half billion or something? Probably a million bucks per car sold.
...............
Tesla did not get any stimulus funds however, Tesla did tap a loan program that was set up under george bush. Tesla also paid that money back in full with interest.


46 posted on 02/26/2014 10:39:38 PM PST by ckilmer
[ Post Reply | Private Reply | To 43 | View Replies]

To: re_nortex

CEO Elon Musk told reporters, “This is going to be a very green factory.”

And that tells me everything I need to know. He’s a tree hugger. As noted in my earlier post Governor Sarah Palin nailed this guy to a T.
...............
Musk is definitely a tree hugger. But he’s building the plant in the desert. He’ll likely use solar power provided by his cousin’s company. But the main idea will be to keep costs to a minimum so he can price his cars at price points the middle class buyers will go for.


47 posted on 02/26/2014 10:42:08 PM PST by ckilmer
[ Post Reply | Private Reply | To 44 | View Replies]

To: mylife

“70K? LOL I am buying something else.”

I drive a Jag currently, and won’t trade mine for that. Anything the libs drive, I avoid. I’d rather save that 70K for the next Barrett Jackson auction and bid for another Corvette. I’m not surprised some on this board get a hard on for this “car”.


48 posted on 02/26/2014 10:42:41 PM PST by max americana (fired liberals in our company last election, and I laughed while they cried (true story))
[ Post Reply | Private Reply | To 29 | View Replies]

To: ckilmer

“And that tells me everything I need to know. He’s a tree hugger.”

Known that for a long time. It’s the new favorite toy for the libtards aside from the Prius. Anything the braindead Dumocraps love, I hate and avoid.


49 posted on 02/26/2014 10:44:06 PM PST by max americana (fired liberals in our company last election, and I laughed while they cried (true story))
[ Post Reply | Private Reply | To 47 | View Replies]

To: ckilmer
I love sarah but disagree with her on this one.

Lest you think we're at loggerheads or that I want to pick a fight with a fellow FReeper, it was your mention of George Kennan that actually captured my attention, hence the "long telegram" mention in my prior post. He lived a long life (died at 101) and was astute enough to warn of the dangers of America being balkanized by the Mexican hordes resulting in a "polyglot mishmash", as he phrased it.

50 posted on 02/26/2014 10:46:52 PM PST by re_nortex (DP - that's what I like about Texas)
[ Post Reply | Private Reply | To 45 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-94 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson