China seems to be working to give Elon Musk’s Tesla a great competition, and to leave him behind in some aspect.
Chinese companies have been pondering upon building additional factories to boost the capacity of producing lithium based batteries with the total output of more than 120 gigawatt-hours/year by the year 2021. This enormous number will be able to supply over 1.5 million Tesla Model S vehicles and around 13.7 million Toyota Prius PHEVs every year.
In comparison, Tesla’s massive factory will be able to produce battery cells with the capacity of around 35 gigawatt-hours per year.
Lithium-ion batteries have been a pillar of support for modern technology, with smartphones, laptops, as well as other gadgets using them. But now, with the increased demand from the electric vehicle industry, the demand is skyrocketing.
Tesla had produced about 84,000 vehicles in 2016 and planned to produce 500,000 by the end of 2018.
Right now, China contributes roughly 55 percent share of the global lithium-ion battery production, while U.S. only has 10 percent. With global battery making capacity forecasted to grow to more than double to reach 273 gigawatt-hours, the share for China has been forecasted to reach 65 percent.
But Tesla isn’t a force to be dismissed just like this. Tesla will reportedly announce four new battery factories by the end of this year. And, Tesla’s production can’t be matched by any individual Chinese battery manufacturer.