Tesla Partners Building More Factories

CATL, the world’s largest maker of batteries for electric vehicles is reportedly scouting locations for new battery factories.

The company - which is supplying Tesla’s Gigafactory in Shanghai - is looking into property in Mexico, and possibly also the United States, so they can support both Tesla’s and Ford’s EV operations on the continent.

While nothing is set in stone yet, we know that CATL is one of the companies Tesla is relying on to supply some of its Gigafactories until they can be upgraded with battery production facilities themselves.

Current contenders for locations are Ciudad Juarez, in Chihuahua, and Kentucky; but those reports could easily shift depending on the deals CATL finds. What’s for sure though, is that Panasonic is hot on their heels.

The Japanese company is reportedly set to build a factory in Kansas to produce Tesla’s new 4680 battery cells. The multi-billion dollar investment will result in a facility that could reportedly reach 150-200GWh produced by 2028.

Both companies are contracted to help supply Tesla with batteries for the foreseeable future, so there’s not really any competition - yet. 

Obviously when Tesla looks to pare down outside sources - like they’ve been saying their goal is - then whichever of these two companies is better placed to supply facilities like GigaTexas will win that contract.

Until then, it looks like Tesla’s going to be flush with batteries at a convenient distance from GigaTexas.