From pv magazine USA
Tesla is already making moves towards developing the company’s first international Gigafactory, just three months after signing a cooperation agreement with the Shanghai Lingang Area Development Administration, according to a company release.
Furthermore, the company plans on accelerating the development and construction of the factory, though the timetable by which it plans to do so is unclear. What is clear is that Tesla plans for the factory to be able to produce 500,000 automobiles a year, including the engines and batteries for them.
While Tesla has not revealed the price paid for the plot of land, Reuters has reported that similar plots of land had sold for $140.51 million. This already-hefty price tag is just the beginning, as several billion more in investment is expected if the company follows through with its accelerated construction plan.
It would appear that the company may not be alone in fronting the expected costs, as a release shared with pv magazine states “Per the cooperation agreement signed in July, both parties will focus on jointly promoting EV technology innovation and industry development, with the city of Shanghai providing support for Gigafactory 3.”
The plant is Tesla’s attempt at expanding its global market share, as well as establishing a foothold in the lucrative Chinese new-energy vehicles industry. This industry is comprised of fully-electric and plug-in hybrid cars and is growing rapidly in China, even as the traditional automotive industry has slowed, according to Reuters.
“Tesla’s mission is to accelerate the world’s transition to sustainable energy not only through all-electric vehicles but also scalable clean energy generation and storage products,” Tesla’s Vice President of Worldwide Sales Robin Ren said in Tesla’s official statement. “Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site.”
This is factory will join its brethren in Nevada and Buffalo, NY, as Tesla’s third Gigafactory, though the one in Buffalo is a joint venture with Panasonic. Once running, the factory will effectively double Tesla’s global manufacturing, while also lowering manufacturing and labor expenses, shipping cost and shipping time.
This decrease in overhead cost will allow Tesla to lower the price tag of their vehicles as the company tries to wedge itself into to the previously mentioned and growing Chinese new-energy vehicles industry.
By Tim Sylvia
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.