as it increases production, tesla worries about battery supply - 18650 battery cell

Tesla's recent growth has been impressive, but at the Teslive event in Northern California in last July, the company's chief executive, Elon Musk, said it was clear that, problems in the supply chain may hinder further expansion.
He said that our current problem is actually not so much a production-related problem as a production-related problem.
In order for production to grow, we must keep the whole supply chain in rhythm.
He said the problem can be as small as a Mexican suitcase rug, or as big as making sure the batteries of Tesla's battery pack flow uninterrupted.
One of the bigger challenges for us will be lithium-
Ion battery production, sir.
Musk said on Teslive.
We need a lot of batteries.
He said the company is working with Panasonic, its main battery supplier, to improve manufacturing capabilities.
Tesla spokesman Shanna Hendriks declined to comment on a report from the Korean Herald that said Samsung SDI, a Korean battery supplier, is in the final stages of contract negotiations, designed to become a battery supplier for Tesla cars.
Automaker's mobile phone needs are not trivial.
In June, Panasonic said it provided more than 100 million batteries for Model S alone.
The automaker aims to increase production to 40,000 vehicles a year by the end of 2014.
Panasonic also invested in Tesla Motors, which invested $30 million in 2010.
Jeff Howell, president of Panasonic industrial equipment sales in the United States, said in a telephone interview that Panasonic believes Tesla is a very strategic customer.
He said the company is committed to providing and supporting the Tesla business by next year with the goal of providing 0. 3 billion batteries.
James Greenberg, executive director of the National Advanced Technology Battery Alliance, said in a telephone interview that this is a good idea for any major car manufacturer
The source of its important components.
The problem became apparent after the earthquake and tsunami in Japan, when some automakers, especially Toyota, were affected by disruptions in parts supply.
According to Tesla's website, more than 7,000 cylindrical 18650 batteries are used for each Tesla Model S battery pack.
They are a variant of the battery that is common in laptops, but in high
Performance Car grade jointly developed by Panasonic and Tesla.
According to the green car report, by 2014, the production of S-type batteries accounted for nearly 40% of the global production of cylindrical batteries. âx80x9dMr.
Musk is focused on this issue.
In a revenue webcast last month, he said, when we were in the third
A new generation of cars is in production, our factory produces half a million cars a year, we will exceed the entire laptop industry with considerable profits, and we need to build a new battery factory.
Sir, in an interview with CNBC last month
Even if the company uses other existing battery sources, Musk says, it still limits our production of thousands of cars a year.
Tesla is conducting a drill to determine what needs to be done to build the Ji processing plant, he said.
He also called it "a really huge battery factory"boggling size.
Asked if Tesla would build such a manufacturing plant on its own, he said it was something to consider.
Clearly, Tesla expects to produce 500,000 cars a year, but the ghost of a battery shortage is real.
Tom Saxton, chief science officer of US plug-in, which promotes the use of electric vehicles, said in a telephone interview that I agree that Tesla looks like it will consume most of its cylindrical lithium-ion-cell market.
I don't think it's very surprising. It's clear that the company's car uses a lot of batteries and it's accelerating.
Of course, telsa's demand for batteries does not necessarily become an obstacle to the international electric vehicle industry as it first appeared, as most automakers use flat prismprismcells batteries instead of cylindrical ones.
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