Battery factory planned would handle all aspects of battery construction

One of the most expensive and important components in any hybrid or electric car is the battery pack. Companies like Tesla are working hard to bring the price of battery packs down to more affordable levels to help boost interest in electric vehicles.
Tesla and Panasonic have started talks focusing on jointly building a $1 billion lithium-ion battery factory (aka giga factory). Panasonic is also inviting other firms to join in on the factory plan. The overall goal is to lower the price of lithium-ion batteries that are used in a wide range of products from smartphones and tablets to full-size automobiles.
The facility the two firms are expected to handle much of the battery making process from processing raw materials to assembly in an effort to further control costs.
The goal is to get the new battery facility into operation by 2017. That is around the time that Tesla hopes to launch its “affordable” electric car that is for the time being is called the Model E.

"The factory is really there to support the volume of the third generation car," Musk said on a recent earnings call. "We want to have the vehicle engineering and tooling come to fruition the same time as the giga factory. It is already part of one strategy, one combined effort."
Some analysts don't think the plan would add much to the bottom line for Panasonic if it comes to fruition. Analyst David Rubenstein from Advanced Research Japan said, "The story is just a talking point. Panasonic's margins on its battery business are razor-thin, so it's little more than wishful thinking that this kind of project, if true, would actually add meaningfully to its bottom line."
Tesla recently announced that a sale to Apple was unlikely and that it was delaying the launch of the model X SUV again. And today, TSLA hit an all-time high of $264/share after the opening bell.

Sources: Business Insider, Reuters

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