Tesla can only make as many electric cars as it can find battery cells to power them, and as it looks to expand, that is becoming a problem. Founder Elon Musk said Tuesday that his solution will be to build a battery factory—the biggest one in the world, no less.
"This will be a giant facility," Musk said. "We are talking about something that is comparable to all of the lithium-ion battery production in the world—in one factory." The entrepreneur also said that the plant would be in the U.S., it would have green features, such as solar power and a recycling program to reuse old batteries, and that it would be responsible for every stage of the manufacturing process, from the raw materials to the finished product.
There is no grand plan to change the existing design of batteries, just a desire to increase the supply, meaning that Tesla will be able to sell more vehicles. Tesla, which turned a profit for the first time earlier this year, cited battery supply as the reason for lack of marketing when the firm opened a store in China recently. Due to a shortage, it wouldn't be able to deliver in significant numbers.
Earlier this week, it signed a huge deal with Panasonic to provide it with three times as many batteries—the plan being to quintuple its output of electric vehicles.