What You Should Know About Tesla’s New Gigafactory

The Factory Will Be Used to Churn Out Panasonic Batteries

Panasonic Corp. lithium-ion batteries manufactured for Tesla Motors Inc. Model S electric vehicles are displayed at Panasonic Center Tokyo in Tokyo, Japan, on Tuesday, Nov. 19, 2013. Panasonic won a contract to supply cells to Tesla's electric vehicles in a deal that may generate $7 billion in revenue. Photographer: Tomohiro Ohsumi/Bloomberg via Getty Images

Panasonic is building battery production lines inside of the Gigafactory. Panasonic is working with Tesla, creating the batteries and delivering them to Tesla’s production line. The main product coming from the Gigafactory will be batteries, but the factory will be used for more than that – Elon Musk says it will be an important resource in combating climate change. When the Gigafactory is completed, its production capacity will exceed the current battery production capacity of the world.