Energy
These 9 Slides Put the New Tesla Gigafactory in Perspective
This week, Tesla Motors officially unveils its massive new Gigafactory 1 at a grand opening event on July 29, 2016.
The ultimate objective of the first Gigafactory is simple, but it is not for the faint of heart. Battery costs are the most expensive component of electric vehicles, and the multi-billion dollar Gigafactory aims to add scale, vertical integration, and other efficiencies together to bring lithium-ion battery costs down.
Costs have already come down faster than most analysts have predicted, and the Gigafactory could be the final catalyst to get below the industry’s holy grail of $100 per kWh. Cheaper battery packs could make electric vehicles competitive with traditional gas-powered vehicles – and if that happens, it is a game-changer for the auto industry.
It’s important to note that the Gigafactory is fairly modular by design, and construction is not completed in full yet. That said, here is what we know about the new Tesla Gigafactory and its possible impact.
1. The Tesla Gigafactory 1 will be the largest building in the world by footprint.
The Gigafactory will take up 5.8 million sq. ft of space, making it bigger than Boeing’s giant facility in Everett, WA. That’s roughly equivalent to 100 football fields.
While the Gigafactory will certainly be one of the largest factories by volume, it will be hard to compete with Boeing for first place there. Boeing’s Everett facility, which is six storeys high to accommodate the construction giant planes, has a total of 472 million cu. ft of volume.
2. The scale will make production of lithium-ion batteries way cheaper.
Tesla recently stated that its current battery cost is $190 per kWh for the Model S.
The Gigafactory aims to reduce battery costs by 30%. Tesla expects this to happen through vertical integration, adding economies of scale, reducing waste, optimizing processes, and tidying up the supply chain.
Tesla CEO Elon Musk has also stated that the company is changing the form factor of the batteries away from the industry standard. Lithium-ion cells used for notebook computer batteries are typically produced in an 18650 cell format (18mm x 65mm), but Tesla will produce them in a 20700 cell format (20mm x 70mm).
3. Tesla initially planned to produce 50 GWh of battery packs by 2020.
4. However, Tesla has now moved that target forward by two years.
Now, it’s anticipated that Tesla could triple battery production to meet this demand. This means it could produce up to 105 GWh of battery cells, and 150 GWh of completed battery packs. Musk says the current factory size will be sufficient for this ramp-up.
5. This will require serious amounts of raw materials.
We previously showed the extraordinary amounts of materials needed to build a Tesla Model S. The batteries, which currently use an NCA cathode formulation, need lithium, graphite, cobalt, nickel, and other base metals that aren’t used as much in an internal combustion engine.
This has created a significant rush for suppliers of these raw materials. It’s also something we are covering in our five-part Battery Series, in which we are looking at lithium-ion battery demand, as well as the materials that will need to be sourced as electric cars go mainstream.
6. If Tesla hits its 2018 projection, it will be a serious milestone for EVs.
Tesla aims to sell 500,000 cars in 2018. If it hits the mark, it will be a big milestone for the electric vehicle market.
To put that number in perspective, the total amount of sales (all-time) for the three most popular EV models (Leaf, Volt, Model S) added up to only about 404,000 cars as of December 2015.
7. This would also put Tesla on par with major auto brands.
Tesla is still a small auto manufacturer – but if it meets its stated production goal of 500,000 vehicles in 2018, that will be comparable with brands like Chrysler, Land Rover, Isuzu, Volvo, and Lexus.
This still doesn’t compare to a giant like Ford, which sold 780,354 F-series pickups alone in 2015. But, it is a step in the right direction for Elon Musk’s company.
8. For every 500,000 electric cars on the road, 192 million gallons of gas is saved.
That’s equal to 290 Olympic-sized swimming pools filled with gasoline, or 21,333 tanker trucks.
Even taking into account coal power and pollution, driving a Tesla is already far better for the environment in most states.
9. Other Giga-facts
The Gigafactory will be 100% powered by renewable energy. It’ll have solar panels covering the roof, while also drawing power from wind and geothermal.
It will employ 6,500 people, and it will have a state-of-the-art recycling system to make use of old battery packs.
Elon Musk says the “exit rate” of lithium-ion cells from the Gigafactory will literally be faster than bullets from a machine gun.
BONUS SLIDE:
Last week, Elon Musk unveiled the “master plan” behind Tesla.
The Tesla Gigafactory will ultimately help to make these ambitions possible.
Maps
Mapped: Renewable Energy and Battery Installations in the U.S. in 2023
This graphic describes new U.S. renewable energy installations by state along with nameplate capacity, planned to come online in 2023.

Renewable and Battery Installations in the U.S. in 2023
This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on real assets and resource megatrends each week.
Renewable energy, in particular solar power, is set to shine in 2023. This year, the U.S. plans to get over 80% of its new energy installations from sources like battery, solar, and wind.
The above map uses data from EIA to highlight planned U.S. renewable energy and battery storage installations by state for 2023.
Texas and California Leading in Renewable Energy
Nearly every state in the U.S. has plans to produce new clean energy in 2023, but it’s not a surprise to see the two most populous states in the lead of the pack.
Even though the majority of its power comes from natural gas, Texas currently leads the U.S. in planned renewable energy installations. The state also has plans to power nearly 900,000 homes using new wind energy.
California is second, which could be partially attributable to the passing of Title 24, an energy code that makes it compulsory for new buildings to have the equipment necessary to allow the easy installation of solar panels, battery storage, and EV charging.
New solar power in the U.S. isn’t just coming from places like Texas and California. In 2023, Ohio will add 1,917 MW of new nameplate solar capacity, with Nevada and Colorado not far behind.
Top 10 States | Battery (MW) | Solar (MW) | Wind (MW) | Total (MW) |
---|---|---|---|---|
Texas | 1,981 | 6,462 | 1,941 | 10,385 |
California | 4,555 | 4,293 | 123 | 8,970 |
Nevada | 678 | 1,596 | 0 | 2,274 |
Ohio | 12 | 1,917 | 5 | 1,934 |
Colorado | 230 | 1,187 | 200 | 1,617 |
New York | 58 | 509 | 559 | 1,125 |
Wisconsin | 4 | 939 | 92 | 1,034 |
Florida | 3 | 978 | 0 | 980 |
Kansas | 0 | 0 | 843 | 843 |
Illinois | 0 | 363 | 477 | 840 |
The state of New York is also looking to become one of the nation’s leading renewable energy providers. The New York State Energy Research & Development Authority (NYSERDA) is making real strides towards this objective with 11% of the nation’s new wind power projects expected to come online in 2023.
According to the data, New Hampshire is the only state in the U.S. that has no new utility-scale renewable energy installations planned for 2023. However, the state does have plans for a massive hydroelectric plant that should come online in 2024.
Decarbonizing Energy
Renewable energy is considered essential to reduce global warming and CO2 emissions.
In line with the efforts by each state to build new renewable installations, the Biden administration has set a goal of achieving a carbon pollution-free power sector by 2035 and a net zero emissions economy by no later than 2050.
The EIA forecasts the share of U.S. electricity generation from renewable sources rising from 22% in 2022 to 23% in 2023 and to 26% in 2024.
-
Money2 weeks ago
Ranked: The World’s Top 50 Endowment Funds
-
Money4 weeks ago
Visualized: Real Interest Rates by Country
-
United States2 weeks ago
Charting the Rise of America’s Debt Ceiling
-
Central Banks4 weeks ago
Comparing the Speed of Interest Rate Hikes (1988-2023)
-
China2 weeks ago
Ranked: The Cities with the Most Skyscrapers in 2023
-
War4 weeks ago
Map Explainer: Sudan
-
Mining2 weeks ago
Ranked: The World’s Biggest Steel Producers, by Country
-
Travel4 weeks ago
Visualized: The World’s Busiest Airports, by Passenger Count