Connect with us

Energy

Tesla Model 3 will use entire world’s lithium ion battery supply at 500k production volume

Three Tesla Model 3 spotted on the streets of San Francisco [Source: sorinnechita via Instagram]

Published

on

Tesla CTO JB Straubel spoke at the Midwest Renewable Energy Association’s Annual Energy Fair over the weekend and shared a summary of Tesla’s progress to date.

To put the scale of Model 3 into perspective, he shared that “the Model 3 alone, when it’s at half a million vehicles per year, will use the world’s entire lithium ion battery supply.” The clarification builds on previous statements by Tesla CEO Elon Musk several years ago that the Gigafactory would produce more lithium ion cells than the entire world’s capacity at the time.

The statement by Straubel provides an updated perspective on the scale Tesla is pursuing with Model 3 and with the Gigafactory. It also spotlights just how far ahead of the competition Tesla is. If a competitor were to just throw money at electric vehicles in an attempt to gain market share, there simply would not be enough batteries in the world to supply the vehicles. More factories are being built but Tesla’s Gigafactory is proving to be a massive competitive advantage that only gets larger with every additional Tesla Gigafactory the company builds.

Straubel shared that Gigafactory 1 is already making the cells required for Model 3, noting that “we’re starting to make model 3 cells right now.” This is the first hard confirmation from a Tesla executive that Model 3 batteries are under production which bodes well for the upcoming first deliveries of Model 3 in July.

Tesla already has two Gigafactories under construction with Gigafactory 1 in Sparks, Nevada serving as the core of the company’s battery production. Gigafactory 1 will produce the new form factor 2170 cells that will be used in the Model 3 and are currently being used in Tesla’s Powerwall and Powerpack energy products. Contrary to early speculation that Tesla’s flagship vehicles would also switch to the larger 2170 battery cell, Musk confirmed that Model S and Model X will not be receiving the newer 2170 cell form factor, for now.

It’s no secret that Tesla has plans to build more Gigafactory plants across the world. The company is expected to announce the locations for each by the end of this year. Having additional Gigafactory facilities would allow Tesla to produce enough batteries to supply several million vehicles per year. With new products like the Tesla Model Y, Tesla Semi and the Tesla Pickup truck emerging in the not-so-distant future, Tesla has a pipeline of products that are sure to keep its Gigafactories busy.

Advertisement
-

I'm passionate about clean technology, sustainability and life. I've worked in manufacturing, IT, project management and environmental...and enjoy unpacking complex topics in layman's terms. TSLA investor. Find more of my words on my website or follow me on Twitter for all the latest. Tesla Referral link: http://ts.la/kyle623

Advertisement
Comments

Energy

Tesla Semi factory is getting a celebration nobody expected

Tesla will inaugurate its Nevada Semi factory September 24, five months after production quietly began ramping.

Published

on

By

Tesla says it will officially inaugurate its new Semi factory in Nevada next month. The Tesla Semi account posted the announcement on X, sharing a graphic titled “Semi Rollout” with a date of September 24. No further details were given about the format of the event or who would attend.

While Tesla’s dedicated Semi plant in Sparks, adjacent to Gigafactory Nevada, opened back in April, with the first trucks rolling off the high volume line on April 29, the timing for the factory inauguration comes at a surprise. The ribbon cutting event five months into production is a break from how Tesla has usually handled its other factories, where the first truck or car off the line typically served as the milestone moment.

The 1.7 million square foot factory was built as part of a $3.6 billion expansion Tesla announced in early 2023, and it shares a site with the battery cell lines that feed the Semi’s structural pack, a decision meant to remove the supply bottleneck that delayed the truck for years. The plant is designed for 50,000 trucks a year at full ramp. Semi program director Dan Priestley has said production “is now ramping” rather than claiming it has reached scale.

Nine years passed between the Semi’s 2017 unveiling and this stage of production, with the truck slipping from an original 2019 target through hand built pilot units for PepsiCo and a slow build out of the Nevada plant. An inauguration event now gives Tesla a stage to talk up that ramp and reset expectations for how many trucks it can begin delivering at scale.

Advertisement
-

The September date also lines up with the Semi’s next milestone. Tesla confirmed the truck is heading to Europe with a full unveiling at the IAA Transportation trade show in Hannover, Germany, running September 15 through 20. Between the Nevada event and the Hannover reveal, Tesla has roughly a week and a half in September to make the case that the Semi is now a truck being built and sold on two continents rather than tested in a handful of fleets.

Continue Reading

Energy

Tesla launches Powerwall Lease for affordable home backup

Published

on

Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

Advertisement
-

This credit lowers the effective cost to roughly $35 per month plus applicable tax.

Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

Advertisement
-

The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

Continue Reading

Elon Musk

Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing

Tesla filed for a $10.1 billion Fort Bend solar factory, but the site isn’t confirmed.

Published

on

By

Tesla has filed paperwork in Texas for a second massive manufacturing project in the same week it locked down its chip fabrication site, this time for a $10.1 billion solar cell plant in Fort Bend County. The filing, submitted July 22 under the state’s Jobs, Energy, Technology and Innovation Act and first surfaced by Sawyer Merritt on X, lists an internal project name of “Project Crystal Sun” and targets a site off FM 762 and FM 1994 near Richmond, about 40 minutes outside Houston.

The application, prepared by Kroll Tax Services on Tesla’s behalf, spans five parcels totaling roughly 3,000 acres within the Lamar Consolidated Independent School District. Tesla wants a 10 year property tax limitation in exchange for the investment, split as $1.5 billion in real property and $8.6 billion in equipment and personal property. The company projects 9,712 permanent jobs once the plant reaches full operation, with 1,147 peak construction jobs during a build window running from this year through 2028 and commercial operations targeted for the first quarter of 2029.

Tesla is not fully committed to Fort Bend County yet. The filing states the company is weighing the site against an unnamed out of state alternative, and frames the tax abatement as what would make Texas competitive against that option. If the district and county decline the incentive, Tesla says it may build elsewhere.

Advertisement
-

Tesla Megapack Megafactory in Texas advances with major property sale

The plant would handle the full solar cell production chain in one facility, according to the filing, covering wafer and ingot manufacturing, coating, metallization and printing lines, cell testing, automated material handling and cleanroom infrastructure. That scope points to Tesla vertically integrating a part of its supply chain it currently sources largely from overseas partners, mirroring the approach behind its expanding Megapack production in Brookshire, Texas, where Tesla has already built out two buildings for its grid battery business.

The timing lines up closely with Tesla and SpaceX’s other big Texas commitment this month. SpaceX confirmed its Terafab chip factory would land in Grimes County days before this filing surfaced, with construction on that $16.8 billion project starting almost immediately after local officials met with residents. Terafab is meant to produce the AI chips running Tesla’s Optimus robots and Full Self-Driving software, while a solar cell plant would feed a different part of the business, the panels and storage systems Tesla sells to homeowners, businesses and utilities, and increasingly needs to power its own data centers.

Musk has talked about building domestic solar manufacturing capacity before, tying it to the amount of power Tesla’s AI ambitions will require.

Continue Reading