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The plant currently boasts a 35-38 GWh capacity. The facility also produces energy storage batteries, with a majority being dedicated to car batteries. The plant houses both Panasonic (TYO:6752) (OTC:PCRFY), which produces all the cells in a separate section, and Tesla, responsible for assembling the packs/modules.
Tesla intends to expand the current facility by adding 100 GWh, and this expansion will exclusively feature Tesla’s production of 4680 cells, without any involvement from Panasonic. This differs from traditional OEMs in the United States, who are opting for joint ventures (50/50 partnerships) to manufacture batteries.
RBC analysts wrote in a note, “Unlike legacy OEM peers in the US who are pursuing JVs to make battery cells, Tesla is going solo – which should enable it to capitalize on IRA credits more than any other automaker and even be a tier 1 battery supplier.”
Beyond batteries, Tesla’s Nevada facility also manufactures drive units. The company’s management considers this in-house production of drive units to be a significant distinguishing factor. Tesla has the potential to become the largest producer of these components globally and has been engaged in their production for 10-15 years.
Shares of TSLA are down 0.91% in premarket trading Tuesday morning.
