Tesla Makes Headlines With Plan For ‘Gigafactory’

8507594145_5ff91139bf_nElectric car maker Tesla Motors Inc. announced plans to invest as much as $5 billion dollars before 2020 in what founder Elon Musk calls a ‘Gigafactory’ to build more affordable cars. Locations being considered include Arizona, New Mexico, Nevada, and New Mexico. The automaker plans to employ about 6,500 people.

The company stated the following on their blog:

“We have an opportunity to leverage our projected demand for lithium ion batteries to reduce their cost faster than previously thought possible. In cooperation with strategic battery manufacturing partners, we’re planning to build a large scale factory that will allow us to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead.”

Amr Bannis is president and CEO of a progressive high technology corporation specializing in automation and control systems design. He was a lead engineer on a project in the 1990s that built a Ni-Oxide producing plant. “The Ni-Oxide was used in rechargeable batteries for GM electric cars at that time,” explains Bannis. “We all know what happened to this project. Now the technology has changed alongside the oil prices, thus Tesla’s plan makes a lot of sense. The battery plan is a fundamental requirement for Tesla to mass produce vehicles.”

Stock for Tesla Motors, based in Palo Alto, California, has skyrocketed over the past year. The new factory should produce more lithium ion batteries annually by 2020 than the total produced in 2013 worldwide. The company plans the production of more than 500,000 electric vehicles as a result. The Tesla S can now last over 200 miles between charges. The vehicle is priced starting at $69,000.

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