Tesla will now begin to create its own EV batteries. The company previously was implementing Panasonic batteries in its cars but has opted to produce its own independently. The company is said to be producing advanced lithium-ion batteries, as well as the infrastructure needed to mass produce the battery cells.
In house production of EV batteries would allow the company to tailor the batteries for its cars specifically. This could increase range as well as performance in Tesla vehicles. This could also help the company lower its costs, as it will be less reliant on other companies.
However, Tesla will still need to work with Pansonic for the time being, as it will need batteries as its own are in development. Tesla still has to finish the design for the batteries and the infrastructure required to mass produce the batteries.
Image Credit: Mike Blake/ Reuters
Why This Trend Is Growing
- In-house Battery Production
- Tesla's in-house production of EV batteries creates a disruptive innovation opportunity for battery customization and increased vehicle range and performance.
- Advanced Lithium-ion Batteries
- Tesla's production of advanced lithium-ion batteries creates a disruptive innovation opportunity for improved battery technology and increased market competitiveness.
- Vertical Integration
- Tesla's move towards vertical integration by producing its own EV batteries creates a disruptive innovation opportunity for increased cost savings and supply chain control.
Industries Being Reshaped
- Automotive
- Tesla's in-house production of EV batteries creates a disruptive innovation opportunity for increased competition and market share in the automotive industry.
- Energy Storage
- Tesla's production of advanced lithium-ion batteries creates a disruptive innovation opportunity for increased innovation and market growth in the energy storage industry.
- Battery Manufacturing
- Tesla's move towards vertical integration for battery production creates a disruptive innovation opportunity for increased efficiency and cost savings in the battery manufacturing industry.
