A new CATL battery factory near Giga Shanghai has begun shipping products to Tesla, the sources said. The increase in battery supply means that the American manufacturer can produce more vehicles to meet the ever-growing demand, for which Tesla began expanding its production capacity, investing $188 million in November 2021.
The Shanghai Observer, via Cnevpost, citing knowledgeable sources, reported that Contemporary Amperex Technology Company Limited (CATL) has begun shipping batteries to Tesla from its new facility near Giga Shanghai. According to information from a source at CATL, deliveries began back in November 2021. Since batteries are one of the major bottlenecks, having more of them could mean Tesla can now continue to ramp up production and supply more vehicles to customers.
For the first time, the new CATL facility near Giga Shanghai became known in June 2021, although at that time it was an unconfirmed rumor. However, already in August, CATL announced that it has signed a strategic cooperation framework agreement with the Shanghai government to build a high-performance manufacturing base in the Lin-gang Special Area. According to rumors, its annual capacity could be 80 GWh.
Since CATL found a ready-made premises that met all the standards and requirements of the manufacturer, the company did not have to build a new factory from scratch. This saved 7-8 months before starting production, the source said. It also pointed out that at the moment the facility has already reached 60% of the production capacity, which means it will be able to increase to 100% very soon. Since the CATL factory is located in the immediate vicinity of Giga Shanghai, there is every reason to believe that the bulk of the batteries will be supplied to Tesla. As far as CATL is the main supplier of batteries to Tesla in China, this also could mean an increase in the production capacity of Giga Shanghai.
In parallel with the start of the first deliveries of CATL batteries to the American manufacturer, in November Giga Shanghai began a project to expand its production capacity, for which about $188 million was allocated. The documents filed by Tesla showed that the planned expansion will allow the company to increase its workforce by 4,000 people. Thus, the number of people who will work at the factory will increase to 19,000 employees.
According to the report, the production line optimization project will focus on the expansion of the press shop, body shop, paint shop, final assembly shop, and logistics operation center. The document also revealed that no changes are planned for the models currently being produced at Giga Shanghai. The application also does not indicate how much the factory's production capacity will be increased.
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