Tesla begins producing battery cells at Nevada gigafactory

CARSON CITY — Electrical car manufacturer Tesla on Wednesday began producing lithium-ion battery cells at its gigafactory east of Reno for use in its new Model 3 and for its storage products.

In an announcement on the company’s website, Tesla and Panasonic announced the beginning of mass production of lithium-ion battery cells.

The high performance cylindrical “2170 cell” was jointly designed and engineered by Tesla and Panasonic to offer the best performance at the lowest production cost in an optimal form factor for both electric vehicles and energy products, the companies announced.

Production of 2170 cells for qualification started in December and on Wednesday, production begins on cells that will be used in Tesla’s Powerwall 2 and Powerpack 2 energy products. Model 3 cell production will follow in the second quarter and by 2018, the gigafactory will produce 35 GWh/year of lithium-ion battery cells, nearly as much as the rest of the entire world’s battery production combined.

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