Tesla Plans to Produce Pouch Batteries at Shanghai Factory Expansion
Battery cells
Reuters reported on May 16 that Tesla Inc has applied to regulators to expand its Shanghai factory and plans to produce pouch-type battery cells for the first time, but in smaller quantities.
According to an undated announcement, the expansion plan will increase the annual powertrain production capacity of Tesla’s Shanghai Gigafactory to 1.75 million units from the current 1.25 million units.
The announcement, posted on the district’s website where the factory is located, did not say whether Tesla had decided to proceed with the expansion or was simply seeking approval for potential future capacity.
The announcement shows that Tesla is also seeking a license to produce pouch-type battery units, with an initial annual production capacity of 20,000 ampere-hours of battery units on the pilot production line, equivalent to a Model Y battery pack. It’s unclear how Tesla will use the pouch cells, a type of battery that Tesla hasn’t previously used in its electric vehicles.
Pouch batteries are different from the battery cells Tesla uses for electric vehicles, and they house battery components in more flexible metal pouches rather than rigid cylinders. Some automakers, such as General Motors, use pouch batteries.
Factory its largest
Tesla also plans to build a new facility at the factory to recycle chemicals used in wastewater treatment at the factory. The announcement also said Tesla was seeking public input on the possible environmental impact of the potential expansion until Wednesday.
Tesla’s Shanghai factory, its largest in the world, will produce about 726,000 Model 3 and Model Y vehicles in 2022, accounting for more than half of the automaker’s global sales.
Tesla is also seeking to increase production of the cylindrical 4680 battery cells in China and bring in new suppliers to reduce costs, Reuters previously reported.
Chief executive Elon Musk has said he would prefer a surplus of batteries that could go directly to the company’s energy storage business, rather than a shortage that would mean “factories shutting down”.
Tesla also said last month that it would build a factory in Shanghai to produce its commercial energy storage unit “Megapack”, which can be used to store electricity from renewable energy sources such as solar energy, each The price of the superpack is approximately $1.9 million before installation.
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