Skip to main content
Advertising

Originally published July 31, 2014 at 9:11 AM | Page modified July 31, 2014 at 12:41 PM

  • Share:
           
  • Comments
  • Print

Panasonic, Tesla to build big US battery plant

American electric car maker Tesla Motors Inc. is teaming up with Japanese electronics company Panasonic Corp. to build a battery manufacturing plant in the U.S. expected to create 6,500 jobs.


AP Business Writer

Reader Comments
Hide / Show comments
@user1109382 @CandrewB Only you would ask such a question. MORE
@gettingreal2 nobody said the technology wouldn't work... MORE

advertising

TOKYO —

American electric car maker Tesla Motors Inc. is teaming up with Japanese electronics company Panasonic Corp. to build a battery manufacturing plant in the U.S. expected to create 6,500 jobs.

The companies announced the deal Thursday, but they did not say where in the U.S. the so-called "gigafactory," or large-scale plant, will be built. Tesla has said that Nevada, Arizona, Texas, New Mexico and California are in the running.

Financial terms weren't disclosed for the $5 billion plant.

The plant will produce cells, modules and packs for Tesla's electric vehicles and for the stationary energy storage market, employing 6,500 people by 2020.

Under the agreement, Tesla, based in Palo Alto, California, will prepare, provide and manage the land and buildings, while Osaka-based Panasonic will manufacture and supply the lithium-ion battery cells and invest in equipment.

Tesla CEO Elon Musk has said the factory will help Tesla reduce its battery costs by 30 percent. Tesla needs cheaper batteries in order to produce its mass-market Model 3, an electric car it's developing that would cost around $30,000. Tesla hopes to have the Model 3 on the road by 2017. The company's only current vehicle, the Model S sedan, starts at $70,000.

"The Gigafactory represents a fundamental change in the way large-scale battery production can be realized," said Tesla Chief Technical Officer and co-founder JB Straubel, referring to the cost reductions.

Sales of zero-emission electric vehicles account for less than 1 percent of the global auto market. But worries about global warming and more stringent emissions regulations in many countries are expected to boost sales of electric and other green vehicles.

Yoshihiko Yamada, executive vice president of Panasonic, said the planned factory will help the electric vehicle market grow.

Panasonic, which has ceded much of its strength in consumer electronics to competitors, is putting more focus on businesses that serve other industries, including batteries.

It remains powerful in Japan and some overseas markets in consumer products such as refrigerators, washing machines and batteries for gadgets.

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama



Want unlimited access to seattletimes.com? Subscribe now!

Also in Business & Technology

News where, when and how you want it

Email Icon

Seattle Sketcher Book

Seattle Sketcher Book

Take home the Seattle Sketcher's latest book! Available now.

Advertising

Advertising

Career Center Blog

Career Center Blog

5 tips for fighting job burnout


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►