Tesla reportedly working on its own battery cell manufacturing capability



Automaker Tesla is considering how it might have another crucial part of its distribution chain, through research being performed at a key laboratory close to its Fremont, CA HQ, CNBC reports. The business currently is determined by Panasonic to construct cells and the battery package it utilizes for its own vehicles, which can be among, if not the most crucial component in terms of its overall bill of materials.

Tesla isn’t a stranger to owning components of its supply chain instead of farming them out to vendors as is more common amongst automakers — it assembles its seats at a facility down the street from its Fremont car factory, for example, and it recently started constructing its very own chip for its autonomous attributes , carrying over those responsibilities from Nvidia.

Eliminating connections in the chain where potential is a movement emulated from Tesla CEO Elon Musk inspiration Apple, which under Steve Jobs embraced an aggressive approach of focusing on key pieces of its supply mix and continues to do so in which it could eke out developments to component price. Musk has repeatedly pointed out that batteries are a constraint in regards in Tesla’s capacity to produce not only is automobiles, but in addition its home power products such as the Powerwall consumer national battery for solar panels.

After the CNBC report, Tesla has been doing its battery research at an experimental laboratory near its factory in Fremont, at a property it keeps on Kato street. Tesla would require lots more time and attempt to turn its battery ambitions at the scale it needs so don’t anticipate to replace Panasonic soon. And in actuality, it may add LG as a provider in addition to Panasonic once its Shanghai factory starts generating Model 3s, per the report.

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