Tesla started production on the battery model # 2170, which refers to the size 21mm x 70mm. Elon Musk, Tesla’s CEO, has claimed that the new battery “has the highest energy density cell in the world, and also the cheapest”.
Mass production has officially started in conjunction with partner company Panasonic, which will be used in Tesla’s Powerwall 2 and Powerpack 2 energy products. The cells for the Model 3 will also be produced at this factory starting in Q2 of 2017.
The company explains how this new cell has allowed Tesla to offer the Model 3 at a much more affordable price ($35,000): “With the Gigafactory online and ramping up production, our cost of battery cells will significantly decline due to increasing automation and process design to enhance yield, lowered capital investment per Wh of production, the simple optimization of locating most manufacturing processes under one roof, and economies of scale.”