These 9 Slides Put the New Tesla Gigafactory in Perspective
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These 9 Slides Put the New Tesla Gigafactory in Perspective

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Title slide Tesla Gigafactory

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.

Tesla Gigafactory the largest building 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 Gigafactory battery production

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.

Tesla Gigafactory battery production

4. However, Tesla has now moved that target forward by two years.

Tesla Gigafactory battery production

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.

Tesla Gigafactory 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 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 milestone for EVs

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.

Impact on environment

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

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:

Elon Musk's Master Plan for Tesla

Last week, Elon Musk unveiled the “master plan” behind Tesla.

The Tesla Gigafactory will ultimately help to make these ambitions possible.

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Visualizing U.S. Crude Oil and Petroleum Product Imports in 2021

This visualization breaks down U.S. oil imports by country for 2021, showing the split by OPEC and non-OPEC nations.

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U.S. Petroleum Product and Crude Oil Imports in 2021: Visualized

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Energy independence is top of mind for many nations as Russia’s invasion of Ukraine has prompted sanctions and bans against Russian coal and crude oil imports.

Despite being the world’s largest oil producer, in 2021 the U.S. still imported more than 3 billion barrels of crude oil and petroleum products, equal to 43% of the country’s consumption.

This visualization uses data from the Energy Information Administration (EIA) to compare U.S. crude oil and refined product imports with domestic crude oil production, and breaks down which countries the U.S. imported its oil from in 2021.

U.S. Crude Oil Imports, by Country

The U.S. imports more than 8 million barrels of petroleum products a day from other nations, making it the world’s second-largest importer of crude oil behind China.

America’s northern neighbor, Canada, is the largest source of petroleum imports at 1.58 billion barrels in 2021. These made up more than 51% of U.S. petroleum imports, and when counting only crude oil imports, Canada’s share rises to 62%.

RankCountryU.S. Oil Imports (2021, in barrels)Share
#1🇨🇦 Canada1,584 million51.3%
#2🇲🇽 Mexico259 million8.4%
#3🇷🇺 Russia254 million7.9%
#4🇸🇦 Saudi Arabia156 million5.1%
#5🇨🇴 Colombia74 million2.4%
#6🇪🇨 Ecuador61 million2.0%
#7🇮🇶 Iraq57 million1.9%
#8🇧🇷 Brazil52 million1.7%
#9🇰🇷 South Korea48 million1.6%
#10🇳🇱 Netherlands46 million1.5%
#11🇳🇬 Nigeria45 million1.5%
Other countries459 million14.7%
Total3,091 million100.0%

The second-largest contributor to U.S. petroleum imports was another neighbor, Mexico, with 259 million barrels imported in 2021—making up a bit more than 8% of U.S. petroleum imports.

Russia was the third-largest exporter of crude oil and petroleum products to the U.S. in 2021, with their 254 million barrels accounting for almost 8% of total imports.

U.S. Crude Oil and Petroleum Imports from OPEC and OPEC+

Only about 11% of U.S. crude oil and petroleum product imports come from OPEC nations, with another 16.3% coming from OPEC+ members.

While imports from OPEC and OPEC+ members make up more than a quarter of America’s total petroleum imports, this share is fairly small when considering OPEC members currently control nearly 80% of the world’s oil reserves.

Which Countries are Part of OPEC and OPEC-Plus?

The Organization of Petroleum Exporting Countries (OPEC) is a group of 13 petroleum producing nations that formed in 1960 to provide steady prices and supply distribution of crude oil and petroleum products.

In 2016, OPEC-plus was formed with additional oil-exporting nations in order to better control global oil supply and markets in response to a deluge of U.S. shale supply hitting the markets at that time.

OPEC members:

  • 🇮🇷 Iran*
  • 🇮🇶 Iraq*
  • 🇰🇼 Kuwait*
  • 🇸🇦 Saudi Arabia*
  • 🇻🇪 Venezuela*
  • 🇩🇿 Algeria
  • 🇦🇴 Angola
  • 🇬🇶 Equatorial Guinea
  • 🇬🇦 Gabon
  • 🇱🇾 Libya
  • 🇳🇬 Nigeria
  • 🇨🇩 Republic of the Congo
  • 🇦🇪 United Arab Emirates

* Founding members

OPEC+ members:

  • 🇷🇺 Russia
  • 🇲🇽 Mexico
  • 🇰🇿 Kazakhstan
  • 🇲🇾 Malaysia
  • 🇦🇿 Azerbaijan
  • 🇧🇭 Bahrain
  • 🇧🇳 Brunei
  • 🇴🇲 Oman
  • 🇸🇩 Sudan
  • 🇸🇸 South Sudan

Although OPEC and OPEC+ members supply a significant part of U.S. crude oil and petroleum imports, America has avoided overdependence on the group by instead building strong ties with neighboring exporters Canada and Mexico.

Crude Oil Imports Capitalize on U.S. Refineries

While the U.S. has been a net exporter of crude oil and petroleum products the past two years, exporting 3.15 billion barrels while importing 3.09 billion barrels in 2021, crude oil-only trade tells a different story.

In terms of just crude oil trade, the U.S. was a significant net importer, with 2.23 billion barrels of crude oil imports and only 1.08 billion barrels of crude oil exports. But with the U.S. being the world’s largest crude oil producer, why is this?

As noted earlier, neighboring Canada makes up larger shares of U.S. crude oil imports compared to crude oil and petroleum product imports. Similarly, Mexico reaches 10% of America’s crude oil imports when excluding petroleum products.

Maximizing imports from neighboring countries makes sense on multiple fronts for all parties due to lower transportation costs and risks, and it’s no surprise Canada and Mexico are providing large shares of just crude oil as well. With such a large collection of oil refineries across the border, it’s ultimately more cost-efficient for Canada and Mexico to tap into U.S. oil refining rather than refining domestically.

In turn, Mexico is the largest importer of U.S. produced gasoline and diesel fuel, and Canada is the third-largest importer of American-produced refined petroleum products.

Replacing Russian Crude Oil Imports

While Russia only makes up 8% of American petroleum product imports, their 254 million barrels will need to be replaced as both countries ceased trading soon after Russia’s invasion of Ukraine.

In an effort to curb rising oil and gasoline prices, in March President Joe Biden announced the release of up to 180 million barrels from the U.S. Strategic Petroleum Reserves. Other IEA nations are also releasing emergency oil reserves in an attempt to curb rising prices at the pump and volatility in the oil market.

While the U.S. and the rest of the world are still managing the short-term solutions to this oil supply gap, the long-term solution is complex and has various moving parts. From ramping up domestic oil production to replacing oil demand with other cleaner energy solutions, oil trade and imports will remain a vital part of America’s energy supply.

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Mapped: Solar and Wind Power by Country

Wind and solar make up 10% of the world’s electricity. Combined, they are the fourth-largest source of electricity after coal, gas, and hydro.

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Mapped: Solar and Wind Power by Country

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Wind and solar generate over a tenth of the world’s electricity. Taken together, they are the fourth-largest source of electricity, behind coal, gas, and hydro.

This infographic based on data from Ember shows the rise of electricity from these two clean sources over the last decade.

Europe Leads in Wind and Solar

Wind and solar generated 10.3% of global electricity for the first time in 2021, rising from 9.3% in 2020, and doubling their share compared to 2015 when the Paris Climate Agreement was signed.

In fact, 50 countries (26%) generated over a tenth of their electricity from wind and solar in 2021, with seven countries hitting this landmark for the first time: China, Japan, Mongolia, Vietnam, Argentina, Hungary, and El Salvador.

Denmark and Uruguay achieved 52% and 47% respectively, leading the way in technology for high renewable grid integration.

RankTop Countries Solar/Wind Power Share
#1🇩🇰 Denmark 51.9%
#2🇺🇾 Uruguay 46.7%
#3🇱🇺 Luxembourg 43.4%
#4🇱🇹 Lithuania 36.9%
#5🇪🇸 Spain 32.9%
#6🇮🇪 Ireland 32.9%
#7🇵🇹 Portugal 31.5%
#8🇩🇪 Germany 28.8%
#9🇬🇷 Greece 28.7%
#10🇬🇧 United Kingdom 25.2%

From a regional perspective, Europe leads with nine of the top 10 countries. On the flipside, the Middle East and Africa have the fewest countries reaching the 10% threshold.

Further Renewables Growth Needed to meet Global Climate Goals

The electricity sector was the highest greenhouse gas emitting sector in 2020.

According to the International Energy Agency (IEA), the sector needs to hit net zero globally by 2040 to achieve the Paris Agreement’s goals of limiting global heating to 1.5 degrees. And to hit that goal, wind and solar power need to grow at nearly a 20% clip each year to 2030.

Despite the record rise in renewables, solar and wind electricity generation growth currently doesn’t meet the required marks to reach the Paris Agreement’s goals.

In fact, when the world faced an unprecedented surge in electricity demand in 2021, only 29% of the global rise in electricity demand was met with solar and wind.

Transition Underway

Even as emissions from the electricity sector are at an all-time high, there are signs that the global electricity transition is underway.

Governments like the U.S., Germany, UK, and Canada are planning to increase their share of clean electricity within the next decade and a half. Investments are also coming from the private sector, with companies like Amazon and Apple extending their positions on renewable energy to become some of the biggest buyers overall.

More wind and solar are being added to grids than ever, with renewables expected to provide the majority of clean electricity needed to phase out fossil fuels.

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