Tesla Gigafactory Expected To Drive Down Battery Costs, Future Of The Company

First Posted: Jul 30, 2016 04:30 AM EDT

Tesla's gigafactory is suggested to be the largest building in the world by footprint, which may be able to produce enough batteries to supply 150 gigawatt hours of batteries per year to power Tesla's vehicles. By 2018, Musk hopes to build 35GWh of batteries per year, which is equivalent to 500,000 Model 3s.

The success of Tesla gigafactory is a critical part of Tesla's future and the execution of Musk's quest to save the world from the effects of climate change. Tesla expects the factory to drive down the cost of lithium-ion batteries used in every Tesla vehicle, Market Watch reported.

Musk says that the factory deserves more attention from creative problem solving engineers than the product it makes. He states that Tesla's gigafactory itself is the machine that builds the machine.

It is said that robots will perform much of the work inside the Tesla gigafactory where the walls are secured with huge red X-shaped braces, providing a measure of seismic security. Engineers, on the other hand, will work at desks near the production line so they can keep a close eye on the machine that will make the machine.

Tesla's gigafactory will be heavily automated, but machines can't do everything. It is suggested that the factory will also employ some 6,500 people when it hits full production, Wired reported.

Meanwhile, Panasonic has invested a huge sum of money in building the battery production lines inside the Tesla gigafactory. It is a sort of tenant and landlord situation where Panasonic owns its production lines while the battery cells are being delivered to the front end of Tesla's production line.

The Tesla gigafactory's end goal is to make Tesla's cars and energy storage products much more affordable. Musk's big ambitions don't end with the factory's grand opening on July 29. He says it is entirely possible for Tesla to build gigafactories everywhere it needs batteries, including Europe, China, and India.

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