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Tesla / Apple talks almost certainly about Li-ion battery factory

Recent meetings between Tesla Motors and Apple were about Tesla's new battery factory and not about an acquisition.

@CharlesJGantt
Charles Gantt
Published Fri, Feb 28 2014 2:15 PM CST   |   Updated Tue, Jun 16 2020 4:29 PM CDT

A few weeks back the internet was set ablaze with speculation and rumors after Elon Musk met with Apple's executives, and while everyone else was hung up on acquisition rumors, I reported that the talks were more than likely about investing in a new battery manufacturing facility. A little over a week later, my suspicions were confirmed when Elon Musk announced what is to be the world's largest battery factory.

Tesla / Apple talks almost certainly about Li-ion battery factory | TweakTown.com

Musk says that Tesla will build the largest battery manufacturing facility ever with the help of investments from others totaling $5 billion of which $2 billion Tesla will invest itself. Musk's goal for the new "Gigafactory" is to have the 10 million square foot facility producing more batteries annually by 2020 than the entire world's current annual production. This would allow Tesla to ramp up its production to the levels of that of Ford, GM and other major manufacturers today.

With Apple one of the largest consumers of Lithium-Ion based batteries in the US, and tons of reserve cash just sitting in banks, it made perfect sense for Tesla to approach the Cupertino-based company as a potential investing partner. With Tesla only looking for $1.6 to $2 billion in extra funds, Apple could easily front the money in exchange for deep discounts, or better battery technology that results from the deal. With battery manufacturing mostly an automated process due to the extreme hazards of the chemicals involved, labor cost would be very low, making the investment even more attractive for Apple.

NEWS SOURCES:tweaktown.com, wired.com

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

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