Tesla applies to expand Giga Shanghai to add pouch-type battery production

Tesla’s Giga Shanghai is about to get much bigger - the company has applied for a substantial expansion of the production facility. According to Reuters’ reports, the company plans to add another production line that, for the first time in Tesla’s history, will manufacture pouch-type battery cells.

According to the public notice issued by the Shanghai regulatory body, Tesla’s intended production output will grow from the current 1.25 million powertrain units to 1.75 million units. The notice wasn’t specific about the location of the facility - whether the company plans to expand the existing factory or add another facility.

The company is asking for permission to produce pouch-type battery cells for the first time, albeit initially the annual capacity is only 20,000 Ah. Although that number looks big, it actually is the capacity of the Model Y battery pack. This means the production will be experimental, and the company will simply explore this new technology. There are no commercial plans yet for this type of battery.

Giga Shanghai manufactured 726,000 Model 3 and Model Y units last year - more than half of Tesla’s global production. The factory has a 1.1 million vehicles yearly capacity, and on top of that, it manufactures powertrains and battery cells. Tesla wants to scale up the 4680 battery cell production and is bringing Megapack assembly to Shanghai as well.

The Megapack energy storage batteries will be manufactured at a new facility near the current Giga Shanghai. Tesla just signed a deal with Lingang authorities to construct Tesla’s first energy storage system factory outside the US. The initial production capacity will be 10,000 units per year with a combined output of 40 GWh. The production is planned to start early next year.

That’s a lot of movement from Tesla, and it ties in well with the report of the new Model 3 going into production this month. The company clearly is planning for increased production, the planned 1.75 million powertrain units yearly capacity suggests the ramp-up of both Model 3 and Model Y production. The new Model 3 will be followed by the new Model Y later next year, and Tesla is simply planning for higher demand from customers.

Source