Panasonic joins Tesla’s battery factory plan image

Tesla Motors, the California-based electric automaker has very ambitious plans for a start-up, with its intention to build a massive battery “gigafactory” that would see the cost of lithium-ion cells drop by 30%.

While such plans could be considered highly adventurous, when it comes to Tesla they are well seen – as the company has been in the past year America’s investor sweetheart. Also, now the prospect is on its positive trend, as Panasonic Corp., Tesla’s biggest provider of cells for its cars so far, has joined the project and signed a letter of intent.

While the Osaka, Japan-based electronics maker, was rather cautious in March when asked about its intention to invest in the US factory, yesterday Elon Musk, the billionaire entrepreneur and CEO and co-founder of Tesla disclosed the Japanese company’s interest in the “gigafactory”.

“We’re actually quite comfortable that we’re heading toward a final agreement sometime later this year,” added JB Straubel, Tesla’s chief technology officer.

“We are talking to Tesla about joining the gigafactory,” confirmed the letter of intent Chieko Gyobu, a spokeswoman at Panasonic. “We’ll discuss details going forward.”

According to Musk, which also announced that in order to speed things up its company is going to begin work on two of the five factory sites instead of the usual one, with groundbreaking on one of them possibly happening as soon as next month.

Via Bloomberg