Tesla Giga Shanghai reorganizes battery production. According to a report, the factory's oldest battery production shop will cease operations and be replaced by a newer, more efficient shop.
According to a report by 36kr (via CnEVPost), Tesla Giga Shanghai recently stopped production on its Phase 1 battery line. Previously, the company received battery cells from suppliers and produced battery packs locally. This helped to better control costs and gave greater autonomy.
According to the report, Giga Shanghai previously had three battery pack assembly workshops—phase 1, phase 2 and phase 2.2. However, according to sources, Phase 1 has stopped its work. This shop was the very first built and its capacity was small. The low level of automation there no longer matches Tesla's needs. Therefore, the company has decided to replace it with Phase 2.2, the sources said.
Phase 2.2 was built just over six months ago. Late last year, two Tesla battery suppliers in China, CATL and LG Energy Solution, entered the factory to provide services and gradually increase production capacity. Phase 2.2 currently has over half the capacity of Phase 1, although it is only in the process of ramping up production. At full capacity, it will outperform Phase 1 and increase Tesla's overall efficiency.
The report says Tesla is making a reorganization ahead of the start of production of the updated Model 3. According to rumors, its production will begin in September this year. Partially outsourcing battery production to suppliers during the shift window at Giga Shanghai further reduces costs and ensures supply efficiency.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.