Could Tesla’s lead in the lithium battery industry be overtaken?

Written By: Stratton Report
August 11, 2017


Musk recently announced plans to build the world’s largest lithium-ion battery in southern Australia in order to solve the energy crisis in that region, and is also on the way to completing a 35 GWh “Gigafactory 1,” which began construction in 2014.

But even with their efforts in place, Giles Keating, chairman at investment consultancy Werthstein Institute, predicts their lead could be overtaken by a foreign company.

In an interview with CNBC, Keating commented:

There’s a kind of arms race on batteries around the world. We know that Elon Musk with Tesla has got this Gigafactory. The Chinese are racing to overtake him; they’ll have three times the capacity. And then in Germany, we’ve just heard announcement of a new plan for a $1 billion factory on batteries.

Keating refers to China, which according to Bloomberg Intelligence, is poised to produce more than 120 GWh by 2021. As for Germany, a consortium of companies led by TerraE Holding GmBH announced their plans to set up multiple 34 GWh lithium-ion battery cell production facilities, in order to surpass Tesla’s Gigafactory goal.

Only time will tell what happens to Tesla’s spot in the lithium battery industry, but for now, Tesla remains on top.

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